How to Generate EMI Annual Return

Please note: Capdesk does not submit the EMI Annual Return to HMRC. The EMI40 filing has 5 sheets. Capdesk currently fills in data in 3 of these sheets: RLC, NonTaxable and Taxable; these sheets include all cancellation and exercise data.

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


The EMI Annual Return (EMI40) is a compulsory filing that must be delivered to HMRC on or before 6 July in a tax year. EMI40 lists all relevant changes regarding your EMI scheme within the tax year.

When you generate your EMI Annual Return filing via Capdesk, the template provided by HMRC will be filled with all relevant changes to your EMI scheme within the current tax year (according to the data registered on Capdesk).

Before generating the report, ensure you have filled in the company’s PAYE reference number in the Legal Details tab. Also, if there are any changes to the EMI due to a disqualifying event, please register this in the disqualifying events tab.

You have a choice of 8 disqualifying events, register where relevant:

Once you’ve registered a disqualifying event, you will see it here:



The “EMI Grants Affected” column will tell you how many EMI grants are affected by the disqualifying event. You can also click into it to see which EMI grants.

(You can also delete a disqualifying event by clicking on the action button (with the 3 dots) -> Cancel.)

Next, you can generate the report by going to the “HMRC” tab -> green button “Export” -> EMI Annual Return.



If your company is not live, you will need to ensure you tick the “Include Drafts?” checkbox. Input a date (the date of which you last filed the Annual Return) and click Order.



You’ll then see an EMI Annual Return report generated and you can click on it to download the report. 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.

Once submitted to HMRC, you can record it on Capdesk as filed to keep a record of the date (found in the “FILED” column) in which you submitted it. You can do this by clicking on the action button (far right button with the 3 dots) -> File.

If the EMI Annual Return is rejected by HMRC, you can record it as rejected on Capdesk. Similarly, click on the action button -> Reject.

Please let us know (, if you would like to fill in data in the Adjustments sheet or Replaced sheet via Capdesk; currently, you can simply generate the report and fill out any data required those sheets manually.