Penalties for missed Employment-Related Securities deadline

The deadline for submitting 2025-26 Employment-Related Securities (ERS) end of year returns was 6 July 2026. If your company has not yet submitted a return, including a nil return, you may already have received a £100 late filing penalty.

Additional automatic penalties of £300 apply if a return remains outstanding three months after the filing deadline, with a further £300 penalty if it is still outstanding after six months.

It’s worth noting that should a company appeal an ERS late filing penalty, any outstanding returns must still be submitted to prevent further penalties.

Since the ERS scheme must be linked to a live PAYE scheme, should the PAYE scheme close, employers must tell HMRC if any associated ERS schemes also need to be closed.

If a scheme is no longer required, employers should cease the scheme with HMRC, and an annual return must still be submitted for the tax year in which the final event date falls.

If you need help with your ERS, contact us. We’re here to help.