The ignorance of the appellant and his agent of the requirement to file employment-related securities returns in respect of two share schemes did not constitute a reasonable excuse for the late filing of those returns for penalty purposes. 

The appellant company registered an employment-related securities (ERS) share option scheme in January 2018, and an ERS enterprise management incentives scheme in March 2018. The appellant was required (by ITEPA 2003, s 421JA) to submit ERS returns for the tax year 2017/18 by 6 July 2018. The returns for both schemes were submitted late. 

HM Revenue and Customs imposed late filing penalties for both returns (under ITEPA 2003, s 421JC). The appellant appealed, contending that it had a reasonable excuse for the delay in filing the returns. The appellant's agent asserted that neither he nor the appellant were aware that returns needed