These are easy to overlook – and HMRC penalties apply automatically where filings are missed. The ERS filing deadline for the 2025/26 tax year is 6 July 2026.
You may need to file an ERS return if, during 2025/26, you had in place:
- A tax‑advantaged share plan (e.g. EMI, CSOP, SIP or SAYE)
- A non‑tax‑advantaged option or equity incentive arrangement
- Any employment‑linked share issue, exercise, transfer or disposal
Importantly, a return is still required even if there was no activity during the year, as long as a share plan remains registered with HMRC.
What needs to be filed and by when?
By 6 July 2026, employers within scope of the ERS reporting requirements must:
- Ensure all relevant share plans are registered on HMRC’s ERS online system
- Submit an annual ERS return for each registered arrangement
Where plans were set up some time ago, or managed by different advisers, registration issues are a common (and costly) cause of late filing.
Why ERS compliance matters
ERS is an area of increasing HMRC focus. Late or missing returns trigger automatic penalties and, for certain tax‑advantaged plans, non‑compliance can put valuable tax reliefs at risk.
In addition, ERS disclosures are increasingly used by HMRC as part of wider employment tax and corporation tax reviews, meaning errors can lead to broader enquiries.
Points to note for 2025/26
There are some practical updates relevant this year, including:
- Limited cases where short‑term business visitors do not require ERS reporting, provided specific conditions are met
- HMRC have introduced simplified reporting for certain net‑settled awards under non‑tax‑advantaged arrangements
These changes will likely administration, but they do not remove the need to review arrangements carefully.
What we recommend doing now
To avoid last‑minute issues in July, we recommend that all employers within the scope of the reporting requirements:
- Identify all share plans and equity awards that existed during 2025/26
- Confirm HMRC registration status for each arrangement
- Check whether a return is required even where there was no activity
- Assemble data early – this is particularly important where leavers or overseas employees are involved
How we can help
If you have concerns in this area we can assist with:
- Reviewing equity arrangements and ERS obligations
- Registering share plans and preparing ERS returns
- Resolving historic non‑compliance and stopping ongoing penalties
- Streamlining processes for future reporting cycles
If you think ERS reporting may apply to your business, or would like help ahead of the 6 July 2026 deadline, please reach out to us at info@kilsbywilliams.com or your usual contact.
