ESSUM56100 - Option notifications: Notice of grant of option to HMRC

If a company grants EMI options, including replacement options, it must notify HMRC’s Small Company Enterprise Centre within 92 days of the date of grant.

Companies must send:

• notification of the grant in the form required by HMRC
• a declaration by the employee that he or she satisfies the working time commitment
• a declaration by a director or the company secretary of the employer company that the requirements of Schedule 5 are met and that the information provided is to the best of his or her knowledge correct and complete

HMRC provide Form EMI 1 (PDF 134K) to notify grants of EMI options.

If a company believes it has a reasonable excuse for not notifying HMRC on time, it should send in the notification without unreasonable delay once the excuse ceases to exist. The company should advise HMRC of all the facts. The delay or failure on the part of the company’s agents is not a reasonable excuse on its own.

If the option is granted by the trustee of an employee benefit trust or another shareholder, the employer is still bound by the requirement to notify the grant of the option. The employer will need to obtain the relevant information from the trustee or shareholder to comply with Schedule 5. (Paragraph 44)