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UK businesses that grant shares or other securities to employees, directors, or officer holders must submit an Employment Related Securities (ERS) annual return to HMRC by July 6, covering all equity-related activity from April 6, 2024, to April 5, 2025—even if no activity occurred. One-off awards still count as a “scheme” and must be registered online, with companies required to self-certify tax-favoured plans and retain screenshots of the entire reporting process for their records. Penalties apply for late filings or inaccurate information, and awards to Employer of Record employees must typically be reported by the Employer of Record.

As the modern workforce becomes increasingly mobile, companies face a new frontier of complexity: payroll tax compliance for employees who cross borders, whether temporarily or permanently. Organizations that proactively address these challenges are better equipped to reduce risk, maintain compliance, and support their global talent effectively. 

Drawing on deep expertise in global mobility and equity compensation, Marlene Zobayan (Rutlen Associates), Andrea Kagan (NVIDIA), and Marianne Friebel (Dolby) shared actionable insights and strategies for navigating the evolving landscape of payroll tax for mobile employees. 

The global mobility ecosystem 
Effective management of payroll tax for mobile employees requires collaboration across a network of internal and external stakeholders: 

• HR and mobility teams: Track employee movements, manage assignments, and coordinate with payroll. 
• Payroll providers: Calculate and remit taxes in multiple jurisdictions, ensuring timely and accurate payments. 
• Tax advisors: Interpret complex, ever-changing tax laws and provide guidance on compliance. 
• Legal and compliance teams: Monitor regulatory changes and mitigate risk. 
• Technology providers: Offer tracking, reporting, and automation tools for mobile workforce data. 
• Employees: Must be educated on their responsibilities and the impact of mobility on their compensation. 

The challenge is threefold: first, accurately tracking employee movements and assignments; second, managing the tax obligations; third, ensuring seamless data flow and communication among all parties. As Marianne Friebel emphasized, ‘Visibility and real-time data are critical for staying ahead of compliance risks.’ 

Key challenges for employers 
Managing payroll tax for a mobile workforce presents unique hurdles: 

1. Complex, fragmented tax regulations: Each jurisdiction has its own rules, thresholds, and reporting requirements. 
2. Tracking employee location and days worked: Even short business trips can trigger tax obligations. 
3. Data accuracy and integration: Disparate systems and manual processes increase the risk of errors. 
4. Employee communication and education: Employees may be unaware of the tax implications of their mobility. 
5. Cost management: Unexpected tax liabilities can impact both the company and the employee. 

Practical steps to payroll tax compliance 
The panelists agreed: success requires a blend of clear processes, and cross-functional collaboration. Here’s how leading companies are tackling the challenge: 

• Centralize data collection: Use technology to track employee movements and assignments in real time. 
• Establish clear policies: Define mobility, tax, and reporting policies that are communicated to all stakeholders. 
• Engage experienced partners: Tax advisors and technology providers can help interpret regulations, share best practices from their client base, leverage existing systems  and if appropriate, automate compliance. 
• Conduct regular training: Equip HR, payroll, and employees with up-to-date knowledge on mobility tax issues. 
• Monitor and audit: Implement regular reviews to identify gaps and ensure ongoing compliance. 

Andrea Kagan highlighted the importance of ‘building strong bridges between HR, payroll, and tax teams, so everyone is working from the same playbook’. 

Embracing mobility for competitive advantage 
Global mobility is no longer a niche concern—it’s a strategic imperative for companies seeking to attract, retain, and deploy top talent worldwide. By investing in integrated solutions, expert partnerships, and clear communication, organizations can turn mobility compliance from a risk into a competitive advantage. 

As the workforce becomes more mobile, proactive management of payroll tax is essential—not just for avoiding penalties, but for supporting business growth and employee satisfaction. 

For more information or to arrange a consultation, contact Marlene, Andrea, or Marianne directly. 

Watch a recording of the webcast on GEOlearn: WATCH THE WEBCAST

The UK government is launching PISCES, a new regulated marketplace allowing periodic secondary trading of private company shares, primarily for sophisticated investors, employees, and select insiders. New legislation will enable employee stock options under EMI and CSOP schemes to be exercised during PISCES trading events without losing their tax benefits, addressing liquidity challenges in private markets. PISCES also offers advantages like Stamp Duty exemptions, lighter disclosure requirements, and greater flexibility, potentially providing private companies with a new pathway toward liquidity and eventual public listing.