How to appeal an ERS late filing penalty

Step 1: file the return

HMRC says it will only accept your appeal once you have met your reporting obligations. File the outstanding return or nil return first. If the scheme has ended, enter the final event date in the ERS online service and file the last return or nil return. Doing this straight away also stops the next penalty.

Step 2: check the time limit

You have 30 days from the date of the penalty notice. GOV.UK says that if you miss a deadline to appeal you will usually need a reasonable excuse for that as well, so do not wait.

Step 3: check you have a reasonable excuse

HMRC's ERS penalty guidance says a penalty may be cancelled or amended if you had a reasonable excuse for not filing on time and you filed without unreasonable delay once the excuse ended. GOV.UK's general list of what may count includes:

• your partner or another close relative died shortly before the deadline;
• an unexpected stay in hospital, or a serious or life threatening illness;
• your computer or software failed while you were preparing your online return;
• problems with HMRC's online services;
• a fire, flood or theft stopped you completing the return;
• postal delays you could not have predicted;
• delays related to a disability or mental illness you have;
• you were unaware of or misunderstood your legal obligation;
• you relied on someone else to send your return, and they did not.

GOV.UK says these will not be accepted: you did not get a reminder from HMRC, you found HMRC's online system too difficult to use, or you made a mistake on your return. HMRC's ERS guidance also says that if you use an agent, the company is still liable for penalties if the agent files late. HMRC decides each case on its facts.

Step 4: send the appeal

HMRC's ERS guidance says to send your appeal, with full documentary evidence of your reasonable excuse, by email to shareschemes@hmrc.gov.uk or by post to Charities, Savings and International 1, HMRC, BX9 1AU.

What to include

• The company name and its ERS scheme reference.
• The tax year of the return and the scheme type, for example EMI 2025 to 2026.
• The date and amount of each penalty you are appealing.
• The date you filed the return or nil return. Your submission receipt shows the date and time.
• What stopped you filing on time, with dates: when the problem started, when it ended and when you filed.
• Evidence: for example a hospital letter, an IT support ticket or a screenshot of an error message with the date.

An outline you can adapt

This is our suggested structure, not an HMRC form. Keep it short and factual, and attach the evidence.

After you send it

HMRC's ERS guidance says HMRC will review your appeal and tell you its decision and what you can do if you disagree. GOV.UK's general guidance on disagreeing with a penalty says that if HMRC does not change its decision you will be offered a review by someone not involved in the original decision, and you can also take the appeal to the tax tribunal.

Keep filing on time

An appeal does not change the next deadline. The 2026 to 2027 return is due by 6 July 2027, on HMRC's new version 7 templates.

Questions