If you’ve made what HMRC consider to be a “significant” error in your reported EMI information, you must notify HMRC by submitting a ‘reasonable excuse’ claim within 9 months of the original notification.
A significant error includes reporting the wrong number of shares under option, or stating the price of the shares wrongly.
To correct a “significant” error you need to contact HMRC to get a “reasonable excuse code” before you can submit your updated EMI notification. The following information needs to be provided to HMRC for the reasonable excuse claim:
- date the options were granted;
- name of the company granting the options;
- the scheme name; and
- the unique scheme reference number (which will have been allocated by HMRC’s Employment Related Securities service when you first registered your EMI options).
HMRC will review the reasonable excuse claim, and if agreed they will allocate a reasonable excuse code, which you will need to enter online when re-notifying HMRC of the EMI options.
Don’t forget to cancel the originally issued incorrect options when you complete and file your Employment Related Securities (ERS) annual return.