How employment related securities work if you're an employer

As an employer you can offer employment related securities (ERS) such as shares in your company to reward, retain or provide incentives to your employees.

You can run more than one scheme at the same time and you can offer a mix of both tax advantaged and non-tax advantaged schemes.

You can offer these as either a formal scheme or plan or as an informal scheme with one-off awards of shares or grants of options.

Find out more about how the different schemes work.

Start submitting ERS returns by 6 July following the end of the tax year.

If you ask an agent to manage your ERS returns, they must complete the Online Agent Authorisation to get authorised as a tax agent.

You must submit an ERS return online every year for all schemes, including one-off awards or gifts of shares. If there are no reportable events, you will need to submit a nil return. Reportable events can include the grant and exercise of share options, award of shares, and other securities to UK employees or directors, through to awards of carried interest. You may need to report changes in rights associated to the securities, or off-market transactions.

You will not be required to submit an ERS end of year return for any events which would normally be reportable if you meet all of the following criteria: