Restoring Compliance: Bringing ERS Filings Up to Date

The Challenge

A director and shareholder of a company reached out to Stratos after reading an online article about Employment Related Securities (ERS) returns. They realised they had failed to submit the required ERS filings for shares issued to their employees two years ago. Their previous accountant had not advised them that these filings were necessary, leaving them non-compliant with HMRC.

The company was concerned about penalties due to the late submissions and needed immediate support to bring their filings up to date while mitigating the potential financial impact.

The Solution

Stratos quickly assessed the situation and provided the following support:

Registration with HMRC: We helped the company register with HMRC for ERS reporting and made sure they had the necessary information and documentation to start the process.

Bringing Filings Up to Date: We analysed the details of the shares issued to employees and prepared the backdated ERS filings, bringing them up to date with HMRC requirements.

Mitigating Penalties: Stratos worked with HMRC to explain the situation and successfully mitigated penalties for the late filings. We were able to have the penalties substantially reduced, with many being completely waived.

The Value

The company’s ERS filings were successfully completed and brought up to date, ensuring full compliance with HMRC regulations whilst reducing penalties. The company is now confident that their ERS obligations are being handled correctly, and they no longer need to worry about future non-compliance or penalties.