The Enterprise Management Incentive (EMI) is a flexible, tax-advantaged share options scheme which enables qualifying companies to reward employees with shares. The scheme – which is designed to offer smaller companies a tool with which to recruit, motivate and retain the best staff – offers generous tax advantages to employees. An EMI scheme is quick to set up, and imposes no onerous administration burden, going forward.
Qualifying companies must be independent, have fewer than 250 FTE employees, carry on a “qualifying trade” in the UK, and have gross assets of £30 million or less. The independence requirement means that, in groups of companies, options must be granted over shares in the parent company. A qualifying trade is, generally, one that is carried out with a view to making a profit – though some activities, including financial trading and property development, are excluded.
The shares over which options are granted can be subject to restrictions, including being a non-voting class. This enables the company to retain a degree of control. Similarly, provision can be made requiring an employee leaving the company to sell back the granted shares.
Bonaccord is pleased to offer a discounted fixed-price package to advise NETPark Net members on setting up a scheme including a template to use with qualifying staff for £250 + VAT. Should an additional share class be required, the cost will be £350.00 +VAT.
If you would like further information, please contact Patricia Barclay on email@example.com.