How to generate your EMI Notification & EMI Annual Return

Export and download HMRC filings for EMI option plans

Please note: Capdesk does not submit either of these documents to HMRC on your behalf. You will need to generate the form, verify and submit to HMRC yourself.

EMI Notification:

You can generate an EMI Notification by navigating to the HMRC tab on the left-hand side, selecting the green 'Generate Filing' button and choosing the EMI Notification option.

An EMI Notification (EMI1) must be filed to HMRC within 92 days of the date of grant under Schedule 5 Income Tax (Earnings and Pensions) Act 2003. You can export an EMI Notification and it will contain EMI grants that have yet to be notified. The filing is generated using the HMRC template, filled with the data of each of your un-notified EMI grants.

A new window will then open where you can select the appropriate date and order the report using the green button.

If your company has not yet gone live, ensure you tick the "Include drafts?" checkbox otherwise the report will be blank.

The EMI notification will now be generated and you can click on the file to download as highlighted below.

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Should any required data be missing we will mark the cells of the report accordingly with #!VALUE, for you to be aware of. You can add the missing data, review and submit to HMRC. (The EMI Notification supports 250 EMI grants to be filed at a time, consistent with the maximum number of full-time employees allowed.)

Once submitted to HMRC, you can record it on Capdesk as filed to keep a record of the date which you submitted it. You can do this by clicking on the '...' action button and selecting the 'Mark as Filed' option. This will update all the related option grants.

If the EMI Notification is rejected by HMRC, you can record it as rejected by clicking on the "..." action button and selecting the 'Mark as Rejected' option.

EMI Annual Return:

The EMI Annual Return (EMI40) is a compulsory filing that must be delivered to HMRC on or before 6 July in a tax year. The EMI40 lists all relevant changes regarding your EMI scheme within the tax year and has 5 sheets in total. Capdesk currently fills in data in 3 of these sheets: RLC, NonTaxable and Taxable; these sheets include all cancellation and exercise data recorded on the platform. 

Once generated, you can download and verify your filing before uploading it to HMRC using the ERS online service.

Prior to generating the report, please ensure the company's PAYE reference number has been completed within the Legal Details tab.

Furthermore, if there have been any changes to the EMI options due to a disqualifying event, please note these within the "Disqualifying Events" tab by selecting the green "Register Event" button.

You have a choice of eight disqualifying events as shown below:

Once a disqualifying event has been registered it will appear on the platform and you can see how many EMI grants have been affected by this. If necessary you can delete an event by selecting the "..." action button and choosing "Cancel".

To generate the EMI Annual Return, again navigate to the "HMRC" tab, select the green 'Generate Filing' button and choose the EMI Annual Return option.

Capdesk will automatically populate the date of the last return as the start date of the report, you will need to choose the end date and select "Order" to generate.

If your company has not yet gone live, ensure you tick the "Include drafts?" checkbox otherwise the report will be blank.

The EMI Annual Return will now be generated and appear in your list of HMRC filings. As before, you can click on the file to download. Again, if any data is missing, the cells will be marked accordingly with #!VALUE for you to amend.

Once submitted to HMRC, follow the steps described earlier in the article to record the EMI Annual return as filed and rejected if required.