When must EMI option grants be notified to HMRC?
By SuLe · Updated 4 June 2026
EMI option grants must be notified to HMRC by 6 July following the end of the tax year in which they were granted. This applies to options granted from 6 April 2024. Miss the deadline without a reasonable excuse and the option loses its EMI status, taking the tax advantages with it — so notification is one deadline never to let slip.
Key facts
- Grants must be notified to HMRC by 6 July following the end of the tax year of grant (for options granted from 6 April 2024).
- Notification is done through HMRC's online Employment Related Securities (ERS) service.
- Miss the deadline without a reasonable excuse and the option is treated as unapproved, losing the tax relief.
- An annual ERS return is also due by 6 July each year, including nil returns.
- You need a PAYE scheme and ERS online access set up before you can notify — arrange it early.
When must EMI grants be notified to HMRC?
The deadline is 6 July following the end of the tax year in which the option was granted, for options granted from 6 April 2024. The UK tax year ends on 5 April, so every grant in a tax year shares the same notification date the following July.
An option granted in June 2026 and one granted in March 2027 both fall in the 2026/27 tax year, so both must be notified by 6 July 2027. That single annual date makes the deadline easy to diarise.
The clock runs from grant, so the date the board actually grants the option is what matters — not when it vests or is exercised.
How do I notify a grant?
Through HMRC's online Employment Related Securities service. You first register the EMI scheme, then notify each grant electronically with the required details of the option and the employee.
There is set-up involved: you need a PAYE scheme and the right HMRC online access in place before you can register or notify. That plumbing can take time, so sort it out well ahead of your first deadline rather than the week before. [More: How do I set up an EMI scheme?]
HMRC's guidance on telling it about your employment-related securities schemes walks through registration and the returns that follow.
What happens if I miss the deadline?
The option generally stops being an EMI option. It is then treated as an unapproved option, so the income-tax exemption on exercise disappears and the employee can face income tax, and possibly National Insurance, on the gain. [More: EMI vs unapproved options — what's the difference?]
There is a narrow safety valve: if you had a reasonable excuse for the delay and notify without unreasonable further delay once it is resolved, the grant can still qualify. But "we forgot" is not a reasonable excuse.
Because the downside is losing the whole point of EMI, treat notification as a hard deadline and put it in the calendar the day you grant.
What is the annual ERS return?
Separate from grant notification, every registered scheme must file an annual ERS return. It is due by 6 July following each tax year, and it reports the year's reportable events across your share schemes.
Crucially, the obligation continues even in quiet years. If nothing happened — no grants, no exercises, no leavers — you still file a nil return by 6 July, and failing to do so can attract penalties.
The annual return covers all your employment-related securities schemes, EMI and otherwise, so keep the register of what needs reporting up to date through the year.
| Obligation | Deadline | Notes |
|---|---|---|
| Notify an EMI grant | 6 July after the tax year of grant | For grants from 6 April 2024 |
| Register the scheme | Before notifying | Needs PAYE scheme + ERS online access |
| Annual ERS return | 6 July each year | Nil returns still required |
| Miss notification | — | Option treated as unapproved unless reasonable excuse |
Worked example
Ravi runs Meadowlark, an insurtech startup, and grants EMI options to four employees in September 2026. That falls in the 2026/27 tax year, which ends on 5 April 2027, so his notification deadline is 6 July 2027.
Because Meadowlark's PAYE scheme and ERS online access are already in place, Ravi registers the EMI scheme and notifies all four grants online in good time, well before July 2027. He diarises 6 July 2027 the day he grants, not the day before it is due.
The following year, Meadowlark grants no new options and has no exercises, but Ravi still files a nil ERS return by 6 July 2028 to keep the scheme compliant and avoid a penalty.
Where founders go wrong
Leaving the PAYE and ERS set-up too late.
You cannot notify until the online plumbing exists, and it takes time — arrange it before your first grant.Assuming notification and the annual return are the same thing.
They are separate obligations that happen to share a 6 July date; you need both.Skipping the nil return.
No activity does not mean no filing — a nil ERS return is still due each year.Relying on "reasonable excuse".
The excuse defence is narrow; forgetting the deadline will not save the EMI status.
Related questions
What is the EMI notification deadline?
For options granted from 6 April 2024, grants must be notified to HMRC by 6 July following the end of the tax year in which they were granted. So an option granted at any point in the 2026/27 tax year must be notified by 6 July 2027. [More: How do I set up an EMI scheme?]
What happens if I miss the EMI notification deadline?
The option generally loses its EMI status and is treated as an unapproved option, so the tax advantages fall away — unless you had a reasonable excuse for the delay. Given how severe that is, notification should be diarised the moment you grant. [More: EMI vs unapproved options — what's the difference?]
How do I notify HMRC of an EMI grant?
You register the scheme through HMRC's online Employment Related Securities (ERS) service, then notify each grant electronically. You need a PAYE scheme and the relevant HMRC online access set up first, which can take a little time — so do it well before the deadline. [More: What is an EMI share option scheme?]
Do I have to file anything every year?
Yes. Once a scheme is registered, you must file an annual ERS return by 6 July following each tax year, for as long as the scheme exists — even in a year with no grants or activity, when a nil return is still required. [More: How do I set up an EMI scheme?]
Did the EMI notification rules change recently?
Yes. For options granted from 6 April 2024, the deadline moved to 6 July following the end of the tax year of grant, giving companies longer and a single annual date. Grants before that date were subject to the earlier, shorter notification regime. [More: Who is eligible for EMI options?]
Notification is the deadline that quietly decides whether your EMI scheme is worth anything — miss it and a tax-advantaged option becomes an ordinary taxable one, however perfect the rest of the paperwork. A SuLe solicitor can register your scheme, notify your grants and calendar the annual return. Book a free call about your option scheme and never let a 6 July slip.
Keep reading: How do I set up an EMI scheme? · What is an EMI share option scheme? · EMI vs unapproved options — what's the difference? · Who is eligible for EMI options? · What is an EMI valuation and how do I get one? · What happens to share options when an employee leaves?
Primary sources: GOV.UK — Tell HMRC about your employment related securities schemes · GOV.UK — Enterprise Management Incentives (EMIs)
