Annual Share Reporting Requirements

In an ever-changing compliance landscape, it is important to keep up to date with changing requirements. If your company operates an employee share scheme, or if any shares have been issued to or purchased by employees by reason of their employment in the past tax year, then an end of year return must be submitted to HMRC.


For the 2018/19 tax year, required forms must be submitted by 6 JULY 2019 to avoid any late filing penalties.

An automatic £100 penalty will be issued per return if the filing deadline is missed, with further charges imposed if the return remains outstanding.

Share Option Schemes

An online return for each Share Option Scheme, such as an Enterprise Management Incentive (‘EMI’) scheme, is required for new and existing schemes. This is in addition to any requirement to notify HMRC of reportable events when they happen, such as the grant of EMI options within 92 days (which must also now be done electronically).

Share Transactions for Employees (‘Employment Related Securities’)

Shares or securities that have been issued to or purchased by employees or directors of a company must now be reported to HMRC. Similarly, the disposal or transfer of any shares or securities should also be reported.

If any of the above has taken place during the tax year to 5 April 2019, an end of year report (formally called a Form 42) will need to be submitted to report the events but no action is required if no such event has occurred.

If you have previously submitted a Form 42, it is likely that HMRC will still require a nil return to be submitted.


Where shares have been transferred or the Company has a share option scheme in place, the Company must register with HMRC’s on-line services and file the required forms before 6 July 2019.

The Company must register with HMRC itself and we recommend that you do this as soon as possible to avoid a last-minute rush. Once you are registered with HMRC, we can then complete and file the required form/forms on your behalf, as well as providing you with any necessary guidance on the matter.

If you would like to discuss your Company’s reporting requirements, or any of the above, please contact our Tax Department on 0161 429 2512