HMRC reinstates penalties for ERS filings

Posted by Jennifer at 13:31 on 2 Mar 2016


From 1 April 2016, you may be subject to penalties if you have failed to register your share schemes correctly, or if you are late in filing your returns.

HMRC would probably be the first to admit that they had some teething troubles with their new online filing service for employment related securities, which saw the first set of online share scheme annual returns filed in 2015.

Companies needed to ensure that they had registered their share schemes and submitted an annual return for each registered scheme.

As HMRC was keen for companies to submit their returns and understand their obligations under the new ERS online system they relaxed their approach to filing penalties for returns for 2015/16. However, from April 2016 these will be reinstated!

If you haven’t already done so, take advantage of this penalty amnesty. Take action now to ensure that your share schemes have been correctly registered, that you have notified HMRC about the cessation of any old or incorrectly registered schemes, and that all your returns are correctly filed.

Under the online service going forward you will not normally be reminded of your obligation to file your return. If you miss the annual filing deadline of 6 July (following the end of the relevant tax year) an automatic penalty will be issued.

Miss annual filing deadline£100
3 months late£300
6 months late£300
9 months late£10 per day

In addition, HMRC can impose a fine of up to £5,000 to the person responsible for submission of a return that contains a careless or deliberate material inaccuracy, or a return that contains a material inaccuracy that is not corrected after it has been discovered.

If you are unsure what to do the RM2 Partnership can provide you with a full administrative service to ensure your schemes are registered appropriately, your records are maintained, and your returns are completed and filed correctly.