Employment Related Securities - administration changes

10 March 2014

HMRC is changing the way both new and existing employee share schemes and arrangements are administered. The changes affect:

  • Enterprise Management Incentives (EMI)
  • Company Share Option Plans (CSOP)
  • Save As You Earn option schemes (SAYE)
  • Share Incentive Plans (SIP)
  • any non-tax advantaged arrangements

If you're an employer operating this type of scheme or arrangement, find out what you need to do below.

Register online from 6 April 2014

From 6 April 2014 you must register all existing and new employee share schemes and arrangements online. You must also self-certify that any tax advantaged schemes meet certain requirements. You must register:

  • unexercised EMI options
  • new grants of EMI options
  • non-tax advantaged arrangements currently recorded on Form 42
  • CSOP schemes, SAYE option schemes and SIPs

HMRC will no longer approve any new tax advantaged schemes. You must self-certify CSOP, SAYE and SIP to confirm that they meet legislative requirements. If you don't do this, any tax advantages will be lost.


Using the new online service

The Employment Related Securities (ERS) service will be part of the PAYE Online for employers service. To use the service you must be registered for HMRC taxes and signed up as an organisation for online services.

If you're not registered you can sign up now - follow the link below for more information.

Register for HMRC taxes and sign up for online services

If you're signed up for online services you can add other people within your organisation so they can access all or some services.

If you're unable to file online please contact share schemes to discuss alternative arrangements.


If you don't operate PAYE

If you're registered with HMRC as a business but don't operate PAYE on employees you'll need to add PAYE to use the ERS service. HMRC will give you further details on how to register before April 2014.


File online from April 2015

From April 2015 you must file all information returns online. Automatic penalties will apply for late filing. HMRC will no longer send a notice to file or reminder. If you don't register your schemes and arrangements by 6 July 2015 schemes previously approved will lose their tax advantages.


More information

Read more about the changes by following the links below.