ETASSUM56070 | Enterprise Management Incentives (EMI): Option notifications: Annual returns – Penalties for late filing

Paragraph 57B, Schedule 5 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA)

Penalties will arise if a return is not received by 6 July following the end of the tax year to which the return relates. A £100 penalty will be issued automatically. An additional automatic penalty of £300 will be charged if the return is still outstanding three months after the due date, and a further penalty of £300 if it is still outstanding six months after the due date. If a return is still outstanding nine months after the due date, HMRC may charge daily penalties of £10 a day from the date specified in the penalty notice (being no earlier than nine months after the due date.

A return must be submitted every year from, and including, the year in which the first qualifying option is granted until, and including, the year in which the termination condition is met.