HMRC are advising that there have been technical issues with their Employment Related Securities (ERS) annual returns online service.
The ERS bulletin provides information and updates on developments relating to employment-related securities, including the tax-advantaged employee share schemes.
Employers have to complete returns for any schemes that have been registered on the ERS online service, such as Enterprise Management Incentives (EMI), a non-tax advantaged scheme or award, Company Share Option Plan, Save As You Earn Scheme and Share Incentive Plan.
HMRC have apologised for the difficulties which prevented some returns from being submitted online. They have confirmed that the service is now working and allowing users to upload the necessary templates and files as part of the return process.
The deadline for filing annual returns is 6th July following the end of the tax year. However, due to the recent problems encountered by customers using the ERS service, they have extended the deadline to 24th August 2017 for the tax year 2016 to 2017.
How to stay clear of penalties for late returns
If your return isn’t filed by the extended deadline of 24th August, the first late filing penalty of £100 will be issued on 25th August 2017.
Additional automatic penalties of £300 will be charged if the return is still outstanding 3 months after the original deadline of 6th July, and a further £300 if it’s still outstanding 6 months after that date. If a return is still outstanding 9 months after the 6th July, daily penalties of £10 a day may be charged.
To make sure you won’t be charged for late penalties, ensure that you have filed your returns by 24th August 2017. The returns can take time so make sure that you are aware of everything that needs to be considered by speaking to one of our specialists.