HMRC is set to issue £300 fines from Tuesday 6 October to employers who have not yet submitted their 2025 to 2026 employment related securities (ERS) end of year returns. The penalty comes three months after the 6 July filing deadline, adding to the automatic £100 late filing penalty already applied.
On 18 September, HMRC reminded taxpayers: "The deadline for submitting 2025 to 2026 employment related securities (ERS) end of year returns was 6 July 2026." The tax authority confirmed that anyone who still has not filed will have been charged the £100 late filing penalty, and this week marks the three-month cut-off where the additional £300 financial penalty is issued.
Three-month and six-month penalty triggers
HMRC stated: "Additional automatic penalties of £300 apply if a return remains outstanding three months after the filing deadline, with a further £300 penalty if it is still outstanding after six months." With the deadline being 6 July, the three-month mark falls on Tuesday 6 October, meaning the £300 penalty now applies to outstanding returns.
The tax authority also warned that a further £300 penalty will be issued if returns remain outstanding after six months, which would fall in January 2027. Employers are urged to submit any outstanding returns immediately to minimise the number and amount of penalties.
Appeals and scheme closure rules
HMRC clarified that employers can appeal an ERS late filing penalty, but only if they have already met their reporting obligations. The tax authority said: "If your client appeals an ERS late filing penalty, any outstanding returns must still be submitted to prevent further penalties."
For schemes that are no longer required, employers should cease the scheme with HMRC. An annual return must still be submitted for the tax year in which the final event date falls. HMRC added: "If your scheme is ceased but you have not yet notified us, you must enter your final event date online."
Reasonable excuse may cancel penalties
HMRC noted that penalties may be cancelled or amended if the employer has a reasonable excuse for not submitting the return on time, provided the return was submitted without unreasonable delay once the excuse ceased. The tax authority added: "If an annual or nil return is due and you have not sent it, send it immediately to minimise the number and amount of penalties."
Employers with outstanding ERS returns should act before further penalties accrue, as the six-month threshold will trigger an additional £300 fine in early January 2027.
