UK ERS Annual Returns 2026/27 — Deadlines, Nil Returns and Penalties

If a UK company has an employment-related securities (ERS) scheme registered with HMRC, it normally has to submit an annual return for that scheme by 6 July following the end of the tax year. The obligation can apply even when there were no reportable transactions: the employer may need to submit a nil return. Missing the deadline can trigger an automatic £100 penalty and further penalties if the return remains outstanding.

This guide is for employers and agents checking the 2025/26 filing cycle and preparing for the next ERS template change. It is separate from the employee-facing UK Share Schemes guide and the planned EMI notification change from April 2027.

What is an ERS annual return?

An ERS annual return reports an employer's employment-related securities activity for a registered scheme. This can include share awards, options, acquisitions, disposals, restrictions, alterations and other reportable events. The exact form depends on the scheme type and the records available in the online service.

The annual return is an employer compliance filing. It is not the employee's Self Assessment return and it does not replace payroll reporting, PAYE reporting or the employee's own CGT records where those obligations apply. A company should reconcile the ERS return with its cap table, payroll, board approvals, option register and any share-plan provider report before submitting it.

When is the return due?

The standard deadline is 6 July following the end of the tax year. For the tax year ending 5 April 2026, the normal deadline was 6 July 2026. The filing should be submitted for each registered scheme that has an annual-return obligation, using HMRC's current online service.

The absence of a reminder is not a safe reason to wait. Employers should keep their own 6 July calendar and confirm that every live scheme appears in the ERS account before the deadline.

What happens if an ERS return is late?

HMRC's published penalty guidance describes a staged late-filing regime. The first automatic penalty is £100. HMRC may add a further £300 when the return is three months late and another £300 when it is six months late. The HMRC internal manual also describes possible daily penalties of £10 per day for up to 90 days once the relevant conditions are met.

The total result depends on the filing history, dates and the penalty notice. Treat the figures as the published penalty structure, not as permission to wait until the next stage. Submit the return or nil return first, save the submission evidence, and then review whether the notice is correct and whether there is a reasonable-excuse or other appeal route.

If you appeal, HMRC's guidance says that the return still needs to be submitted. An appeal does not replace the outstanding filing. Keep a record of the reason for delay, the date the issue was discovered, the corrective steps taken and the supporting documents.

Nil returns and schemes with no activity

A common error is assuming that no awards in the year means no annual return. A registered scheme can still require a return or nil return. Before filing, check:

1. whether the scheme is still registered in the ERS online service;
2. whether any award, option exercise, restriction, cancellation, transfer or disposal occurred;
3. whether payroll or a share-plan administrator recorded an event that the company has not reconciled;
4. whether the scheme ended and needs a final event or ceased-scheme process; and
5. whether the return is for the correct tax year and scheme reference.

Do not create a second scheme registration to work around a missing or duplicated record. Use HMRC's correction route, document the reason and keep the original scheme details available for the audit trail.

What should an employer reconcile before submission?

The filing process is easier when the company maintains one controlled ERS register. At minimum, reconcile:

The register should distinguish the date of the event from the date it was entered into software. This matters when an award is approved near 5 or 6 April and when the filing system changes.

Net settlement reporting

For a non-tax-advantaged share scheme using net settlement, HMRC's August 2026 bulletin says that employers no longer need to complete two lines of information for each net-settlement event. The ERS end-of-year return uses one row of information per employee. The updated approach applies to all tax years; it does not change the underlying requirement to account for Income Tax and National Insurance correctly.

Keep records showing the tax and National Insurance calculation and how the amounts were recovered from employees. HMRC says these records should be retained for the current tax year plus 6 years and produced if requested during a compliance check. Reconcile the one-row return data to the payroll calculation, share-plan transaction report and employee recovery record before submission.

The ERS template change from April 2027

HMRC's July 2026 bulletin says that updated ERS end-of-year return templates and guidance are planned from 6 April 2027. The current templates are expected to be removed on 6 April 2027, with new versions published on 2 November 2026 and the checking service updated on 1 February 2027. New templates are expected to be required for returns from 6 April 2027.

This is a filing-template change, not a general removal of ERS reporting. Employers should download the current guidance when it is published, update payroll and share-plan software, and test the return against the scheme register before the next 6 July deadline. If the company also grants EMI options, read the separate EMI notification changes guide: the grant-notification reform and the annual ERS template update are related administration topics but are not the same rule.

Frequently Asked Questions

Evidence and decision checks

A reliable uk ers annual return penalties 2026 27 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.

Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.

Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.

Evidence and decision checks

A reliable uk ers annual return penalties 2026 27 review starts by fixing the tax year and the date on which the relevant event happened. Record the person's or business's status, the income or transaction category, the amount before tax, tax already withheld, and any election or claim being relied on. Do not combine a headline figure with a final liability: the result can change when another income source, a payment date, an ownership interest or a qualifying condition is added.

Keep the source documents behind every important input. Depending on the subject, that may include payslips, invoices, bank statements, contracts, provider statements, travel records, HMRC notices, payroll submissions, valuations or correspondence. Where an amount is apportioned, write down the method and retain the underlying total. If a correction is made, preserve the original figure and explain the reason, date and evidence for the replacement.

Before relying on the result, check the current official guidance for the same tax year and jurisdiction. Distinguish enacted law from a consultation, draft measure, announcement or future proposal, and record the effective date. Reconcile the final estimate to the relevant return, payroll record or HMRC account. A calculator or explanatory guide can support a decision, but it cannot replace the eligibility test or the official filing and payment process.

For employee-level share taxation, use the Share Schemes UK guide. For a calculator-based estimate, use the Share Schemes Calculator→, but treat the result as an estimate and check the scheme documents and HMRC filing position for the live award.

Official sources

• HMRC — Employment related securities bulletin 65
• HMRC — Submit employment related securities returns
• HMRC — Deal with an employment related securities penalty
• HMRC — Employment related securities bulletin 67
• HMRC — Employment related securities bulletin 68
• HMRC — Employment Related Securities Manual, ERSM140080
• HMRC — Register an employment related securities scheme
• HMRC — Agent Update 147