HMRC issues penalties for share scheme returns in error

Companies are required to send a return of their share or share scheme activity (involving employees or directors) to HMRC for each tax year, the deadline being 6 July. Penalties (initially at £100 per return) are charged where returns are submitted later than this. This year, HMRC have incorrectly issued penalties to some companies, even where they were submitted well before the deadline. They have now noticed this and have said:

“We are aware of a technical issue affecting ERS late filling penalties for 2022-23. This resulted in some penalties being issued incorrectly to customers who filed their returns on time. We have now cancelled any penalties issued incorrectly and removed the charges. Penalties will still apply for customers who submitted their return after the 06 July deadline. If you were late filing and have seen a penalty on your account, you will shortly receive a letter to confirm this.”

If you have received a penalty which you think is incorrect, you may want to wait until HMRC correct this, but otherwise contact them to make sure this is done. For more information, please contact a member of our Business Tax team.