Filling missing data on the EMI annual notification spreadsheet

Completing the HMRC annual notification for EMI Options

Every year HMRC needs to be notified about any changes to your EMI options scheme. This is achieved through the submission of a spreadsheet listing changes and cancellations.

The Vestd platform will fill in most of this information for you, but you will need to double-check it's correct and fill in any missing info. We'll guide you through each spreadsheet entry, you should also refer to the government guidance where necessary.

1. To begin, log in to Vestd and go to Share schemes > Annual notifications via the homepage. You should then click Complete your annual EMI notification to start the process.

2. If you see this warning message, you still need to submit your initial EMI notification. Once that is complete, you can start your annual notification.

3. The platform will now show you steps on how to complete your annual notification.

4. Once you have downloaded the spreadsheet, please check each entry to ensure it matches your understanding of what's happened to your EMI options this tax year.

5. The instructions below will help you complete the information we are unable to

6. Once you have completed the above, you can follow this guide to complete your annual notification.

Sheet 1 (Adjustments) and 2 (Replaced)

These sheets are only used if there have been adjustments as a result of a variation in the share capital or company reorganization. These won't be filled in automatically, please contact your accountant if any of these have occurred.

Sheet 3 (RLC)

This will include any options that have been cancelled.

• Question 2-3 - Disqualifying event: If the recipient is no longer an employee we will have completed this with the figure 3, but please verify the details are correct.
• Question 7 - National Insurance number: We will pre-populate the NI numbers we know, but please add any that are missing as it is a mandatory field.
• Question 8 - PAYE Reference: We will pre-populate this field if we know the company's PAYE reference number. If not, please enter it as it's a mandatory field.
• Question 10-11 - Money received: This has defaulted to 'no' but if any compensation was given to the employee please include details here.
• Question 12 - PAYE operated: If the shares were readily convertible into cash (i.e. immediately sold, like during an exit event), both Income Tax and National Insurance are due on the difference between the exercise price and the Actual Market Value (AMV agreed with HMRC at the time of grant). This must be paid by the company via PAYE then reimbursed by the shareholder within 90 days. If this is the case, enter "Yes." If not, enter "No" as this is a mandatory field.

Sheet 4 (NonTaxable)

This includes any options that have been exercised at AMV or above.

• Question 5 - National Insurance number: We will pre-populate the NI numbers we know, but please add any that are missing as it is a mandatory field.
• Question 6 - PAYE Reference: We will pre-populate this field if we know the company's PAYE reference number. If not, please enter it as it's now a mandatory field.
• Question 10 - AMV at the date of exercise: Please enter the value of the shares at the date of exercise. The difference between this and the price paid will be the amount you can claim as corporation tax relief. For more information please see our taxation help article.
• Question 13 - HMRC valuation reference: If HMRC approved your valuation, please enter the reference number given. This is also mandatory (only if a reference was given).
• Question 15 - Sold as part of exercise: Were the shares sold on the same day as part of the exercise process?

Sheet 5 (Taxable)

This will include any options that have been exercised below AMV.

• Question 7 - National Insurance number: We will pre-populate the NI numbers we know, but please add any that are missing as it is a mandatory field.
• Question 8 - PAYE Reference: We will pre-populate this field if we know the company's PAYE reference number. If not, please enter it as it's now a mandatory field.
• Question 12-13 - AMV/UMV at date of exercise: Please enter the value of the shares at the date of exercise. The difference between this and the price paid will be the amount you can claim as corporation tax relief. For more information please see our taxation help article.
• Question 17 - HMRC valuation reference: If HMRC approved your valuation, please enter the reference number given. This is also mandatory (only if a reference was given).
• Question 18 - ITEPA Election: Was an ITEPA 431 election completed at exercise?
• Question 19-20 - Approach to NI and tax paid through PAYE: Please consult the guidance notes and/or your accountant for details.

If any information is unclear please contact us or your accountant or tax advisor.

Depending on the activity in your scheme, not every sheet or question will need answering. But please do not delete any of the questions or change the format of the spreadsheet as HMRC may reject it.

Once you have completed the spreadsheet, read our guide for step-by-step instructions on submitting the notification to HMRC.

Our team, content and app can help you make informed decisions. However, any guidance and support should not be considered as 'legal or financial advice.'