Are HMRC set to perform more rigorous compliance checks on Employment Related Securities?

Original content provided by BDO United Kingdom

Ahead of the 6 July Share Plan Reporting deadline, HMRC have announced an increase in mandatory data to be reported on the Employer Related Securities (ERS) Returns.

For all ERS returns submitted from 6 April 2023 completion of the following fields will become mandatory:

  • PAYE reference of the employing company;
  • Confirmation whether PAYE has been operated;
  • National insurance number or strict guidance to follow where an individual has no NI number.

What do we think this means going forward?

There is no doubt this additional data will improve the quality of information available to HMRC. We envisage HMRC will be able to perform more rigorous cross checking of the ERS data and in turn could start issuing more ERS specific compliance checks.

It is also possible that historic returns filed from 6 April 2023 will be required to include the new mandatory information such that it will be more onerous to rectify historic non-compliance.

Since more data is now required, it may take longer for filing to be completed so we would recommend leaving plenty of time to ensure the filing deadline is still met.


How we can help you

As way of reminder, the window for share plan reporting opens on 6 April and returns must be filed by 6 July. We can help with navigating the changes this year. Contact our team for more information: Maybeth Shaw, Claire McGuigan, Karen Doherty, Geraldine Browne, Lorraine Nelson