HMRC have released the April 2025 edition of the Employment-Related Securities (ERS) Bulletin. It contains some useful information and provides a reminder about this year’s filing deadline. Here is our enhanced version.
Employers’ National Insurance Contributions (NICs) joint elections: changes to the administration process
Employers and employees can Make a joint election to transfer the liability for an employer’s NICs to the employee, in specific circumstances.
- On 28 April 2025, the Government announced changes to simplify the administration of making a joint election. This change took effect from 1 May 2025.
- If you use the HMRC pre-approved legal document when entering a joint election, you will no longer need HMRC’s approval.
- If you use your own legal document, you should send it to HMRC for approval before asking an employee to agree to it. It can take up to 30 days for HMRC to either give approval or send a reply stating what changes are required or what information is needed.
- Whether you use the pre-approved or your own legal documents, you must keep copies for your records and present them to HMRC if requested.
- More details can be found in the employment-related securities manuals at ERSM170750 and ERSM170760.
See Employee Shares: the Employment-Related Securities rules
Employment-Related Securities end-of-year returns reminder
- You must submit a return or a nil return:
- On or before 6 July 2025, to avoid receiving a late filing penalty.
- For every scheme that you have registered on the employment-related securities online service,
- Using the correct and most up-to-date end-of-year return template.
- If you have stopped being an employer and have ceased your PAYE scheme, you should check if you need to also stop your Employment-Related Securities scheme.
- If you have registered a scheme in error or it’s no longer operating, you must Tell HMRC the scheme has ended and submit a return or nil return for the tax year in which the final event date falls.
- Save a copy of your return for your own records before you submit it.
See Employment-Related Securities: Reporting
Enterprise Management Incentive (EMI) scheme notification reminder
- On or before 6 July 2025, you must submit:
- Save a copy of your return and notification for your records before you submit it.
See Employment-Related Securities: Reporting
Finance Act 2025: changes to Employee Benefit Trusts (EBTs)
In the Autumn Budget 2024, the Government announced several changes to the conditions needed to be met for a transfer into an EBT to be exempt from Inheritance Tax (IHT), with effect from 30 October 2024.
These changes were introduced alongside several other changes to the regime for Employee Ownership Trusts (EOTs).
- The changes to EBTs have now been legislated in sections 58 to 60 of Finance Act 2025. The new legislation amends sections 13 and 28 of the Inheritance Tax Act 1984 to:
- Make sure it is clear that the restrictions on connected persons benefiting from an Employee Benefit Trust must apply for the lifetime of the trust.
- Restrict the IHT exemption to where the shares have been held for two years before settlement into an Employee Benefit Trust. Where there has been a share reorganisation, the shares previously held will be taken into account in considering the two-year holding period.
- Make sure that no more than 25% of employees who can receive income payments are connected to the participator, for the Employee Benefit Trust to profit from favourable tax treatment.
See Employee Ownership Trusts: An exit route for owner-managers
External link
HMRC: Employment-related securities bulletin 60 (April 2025)
