Small firms that reward staff with share options are set to lose one of their more tedious HMRC chores, after the government published draft legislation scrapping the requirement to notify the taxman separately every time an Enterprise Management Incentive option is granted.
Under proposals included in the draft Finance Bill 2026-27, published on 13 July, companies operating EMI schemes would report new option grants through their existing annual EMI return rather than filing a standalone notification for each grant.
For the thousands of growing businesses that use EMI to compete for talent against deeper-pocketed rivals, the change removes a compliance trap that has caught out many an otherwise well-run company. Miss a notification and the tax advantages that make the scheme worthwhile can be put at risk.
Cam Wright, a Senior Associate at audit, tax and business advisory firm Blick Rothenberg, said: “As part of the draft Finance Bill 2026-27, HMRC have published proposals to simplify the grant reporting process. Reducing the reporting burden should make EMI more appealing to businesses.”
He added: “The proposals remove the requirement for companies to separately notify HMRC about EMI option grants. Instead, options granted on or after 6 April 2027 would be reported through the existing annual EMI return.”
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