Employment Related Securities year end reporting: registration process and deadlines

The registration process

In order to complete and submit a return a ‘scheme’ needs to be registered online.

To register your schemes and arrangements, you need access to HMRC Online Services and PAYE for employers. Once you have access:

1. Login to HMRC Online Services
2. Continue past the security message
3. Click on ‘Services you can use’ in the left-hand menu
4. Click on ‘PAYE for Employers’
5. At the bottom of the page on the right-hand side there is a section called ‘employment related securities’. Click on ‘Register a scheme or arrangement’ and follow the on-screen instructions

Deadlines and penalties

Although PKF Francis Clark can assist in the preparation and submission of the Form 42, it is the company’s responsibility to register the ‘other’ scheme first. In fact, it is not possible for us as agent to submit a Form 42 for 2021/22 unless the company has first registered the scheme.

All employee share schemes need to be registered by 6 July 2022, however as the whole registration process can take up to six weeks we would recommend that the schemes are registered well in advance of this.

We would also note that as penalties are geared to the failure to submit returns, generally, we recommend registering the fewest number of schemes. It is usually possible to register a single ‘scheme’ to cover all management shares for a whole group.

Want to have a look back at the ‘Employment Related Securities’ (ERS) series?

• ERS year end reporting: Summary
• ERS year end reporting: What is ERS year end reporting?
• ERS year end reporting: what has to be reported?