Check how to deal with an employment related securities penalty
Find out what to do if you receive an employment related securities (ERS) penalty, how to avoid further penalties and how to appeal a penalty.
Late filing penalties apply to employment related securities (ERS) annual returns that are submitted (filed) after the relevant due date.
You must submit an annual return or nil return for all schemes that you have registered on the ERS online service.
HMRC will not remind you to submit your return. You must submit your ERS return by 6 July following the end of the tax year for which the return is due. If you submit your return after this date, you’ll be charged a late filing penalty. If you use an agent, you are still liable for penalties if they submit your return late.
Late filing penalty charges
HMRC will apply a £100 penalty automatically if the end of year ERS return or nil return is not submitted by 6 July.
What you should do if you receive a late filing penalty
You should either:
- submit your annual or nil return as soon as you can
- enter your final event date online if you’ve ceased your scheme but not yet notified us
By doing this you may avoid further penalties. You should do this even if you have, or are going to, appeal the late filing penalty.
Further late filing penalty charges
If you do not submit your return by:
- 3 months after the original deadline, HMRC will apply a further, automatic penalty of £300
- 6 months after the original deadline, HMRC will apply a further automatic penalty of £300 in addition to the 3 month penalty
- 9 months after the original deadline, HMRC may apply further penalties of £10 a day
Appeal a late filing penalty
If you do not agree with a penalty you can appeal. We’ll only accept your appeal if you’ve already met your reporting obligations.
If an annual or nil return is due and you have not sent it, send it immediately to minimise the number and amount of penalties.
If your scheme is ceased but you have not yet notified us, you must enter your final event date online.
Your penalty may be cancelled or amended if you have a reasonable excuse for not submitting your return on time and it was submitted without unreasonable delay once the excuse ceased.
Send your appeal, including full documentary evidence of your reasonable excuse, by email to shareschemes@hmrc.gov.uk or write to this address:
Charities Savings and International 1
HMRC
BX9 1UA
What happens after you send your appeal
HMRC will review your appeal. When we complete our review, we’ll inform you of our decision and what further steps you can take if you disagree with our decision.