EMI Filing Requirements

Deadlines

Legal documents and board minutes must be signed, including the option agreements before the valuation expires – this is usually 60 days from the date of the HMRC valuation agreement letter.

The company must notify HMRC of a grant of EMI options by 6 July following the end of the tax year of the share option grant date or there is a risk that the EMI tax advantages will not apply.

To notify HMRC of a grant of EMI options, the company must first register the EMI option scheme (this can take up to 10 working days). Alternatively, your agent (e.g. Barnes & Scott) can make an EMI notification on the company's behalf (this can take a further 10 days to set up)

An annual EMI notification is required each year by 6 July for the previous tax year. This return lets HMRC know whether there have been any lapses or cancellations of options. Newly granted options are notified as above (see point 2 above) and are not reported on this return.

Registering an EMI option scheme

You must register the EMI option scheme since HMRC does not permit agents (e.g. Barnes & Scott) to do this. However if you allow us to temporarily use your HMRC log-in details we can do this on your behalf, with your permission.

To register the scheme, you must have set up an PAYE online account. Please note that this can take up to 10 working days.

Once PAYE online has been set up, in the HMRC online PAYE portal, click on Employment Related Securities > Register a scheme > EMI and follow the onscreen instruction.

Take a note/screenshot of the unique reference number for your EMI scheme (this is needed in order to notify HMRC there has been a grant of EMI options).

Making an EMI notification yourself

Notify HMRC of the grant by 6 July following the tax year in which the grants were made to the option holder(s). This is done online here.

You can tell HMRC about a grant of options for up to 30 employees by either using the ERS online service or by sending an EMI notification template.

To use ERS online service, follow these steps:

Login to HMRC online services.
Continue past the security message.
Click on ‘Services you can use’ in the left-hand menu.
Click on ‘PAYE for Employers’.

At the bottom of the page on the right-hand side there is a section call ‘employment related securities’. Click on ‘EMI notifications’ and follow the on screen instructions. You will need the scheme number your received when you registered the EMI options.

For more than 30 employees

You must send HMRC an EMI notification template.
You can use the following guidance notes to help you fill in columns G, H, I and J on the EMI notification template are available.

Barnes & Scott makes an EMI notification of your behalf

Your agent (i.e. Barnes & Scott) can make the notification of a grant of EMI options on your behalf (although they cannot register the EMI scheme with HMRC).

Unless we are already authorised to access your company’s PAYE online, we will require:

Your employer’s PAYE Reference
Accounts Office Reference

We will then request an authorisation code which will be sent in the post to your register office address. This can take up to 10 working days.

Please pass us the authorisation code as soon as possible for us to become authorised and to make EMI notifications on your behalf.