Once an EMI scheme has been setup and options issued to employees you need to let HMRC know no later than 92 days after the option grant/agreement date.
This is a fairly straight forward process but does contain a number of tricky questions. Laid out below is how to complete this process.
You need to log into your HMRC account for your business, this needs to be an account with PAYE setup.
You start by navigating to the HMRC Employment Related Securities system, and selecting "in year notification", and entering the date the options were granted - you will then end up on the page below.
Please click on the "Create an EMI Notification" link at the bottom of the page. The label may be different as it includes the name you gave to the scheme when setting it up.
(The left hand sidebar on your screen may look different)
You need to choose the tax year the options were granted in and then click next.
If these are new EMI option agreements please select No for the first question.
Typically the options will be issued for shares in the company employing the individual so the second answer would normally be Yes.
Once you have answered those 2 questions you will end up on the summary page below, this has 3 sections that need to be filled out, one about your company, another about the shares being offered and finally details of the option recipients.
The company details page needs some basic information about your company. The tax reference is your UTR and is a ten digit number, the company registration number is the number issued by Companies House when you incorporated.
The second section is about shares being issued.
You will need to know if the class being offered is new, is being used just for the issue of options, and if the company has other share classes.
You will also need to enter the UMV and details of the HMRC valuation obtained for the option issue.
The 3rd section is for the details of the employees who have received the options. These details can be entered one at a time or via uploading a spreadsheet.
From the page below you can choose to download a template spreadsheet, add an employee by hand or upload a spreadsheet.
If you choose to add an employee manually you will see this screen.
If you choose to upload a spreadsheet you will see this upload page where you need to choose the spreadsheet file.
We recommend you choose this option as we can supply you with a spreadsheet that is ready to upload.
Once the spreadsheet has been uploaded a confirmation is displayed, if you need to make corrections you can do this here.
When all 3 sections have been filled in you will see 3 ticks and can click next at the bottom.
A complete summary of the information that's been entered is then displayed, this is your last chance to make any corrections.
You will then need the declare that the information submitted is correct.
You may be logged out at this point and you may have to log back in as it will show you the log-in page again. Please log back in – where it will take you straight to the Acknowledgment Page….
Finally you will receive a confirmation message confirming the information that has been submitted has been received. We suggest that you take a screenshot of this and keep for your files.
You should now mark these options as being notified to HMRC, please do this when viewing the options on Vestd or by letting us know.