Whether you are looking to incentivise and retain existing staff or recruit new staff, an employee share scheme can be a tax efficient and cost effective option to form part of the remuneration package offered.
Employee share schemes provide a great incentive to motivate key individuals by allowing them to have a current or future stake in your business. The common purpose of sharing in the success of the business can help to encourage loyalty and motivate your employees which a normal remuneration package of salary, bonuses and benefits might not.
There are many different types of HMRC approved and unapproved employee share schemes including share options or share awards. It is a complex area and the appropriate arrangement will depend on the objectives of the business as well as the needs of the employees.
The two most common HMRC approved schemes for small and medium sized companies are Enterprise Management Incentive (EMI) schemes and Employee Shareholder Status (ESS). Both arrangements operate differently but offer significant tax incentives and are relatively flexible.
How can we help you?
Our tax specialists will work closely with you and your solicitors to advise on the most suitable arrangement for your business. We will work closely with you to ensure that the plan meets your commercial objectives and obtain agreement of any valuations of the business that are required from HMRC.