Incentivise your team by offering a share scheme, that also benefits your business!
Share options are a great tool to get your team really bought into the company: giving them ownership, which builds their engagement. There’s various options but one of the most tax advantageous and appealing for employees is the EMI.
What is EMI?
It’s an approved employee share scheme that is available to most UK based trading companies, allowing employers to grant share options to key employee’s tax efficiently, as a reward for their efforts within the business and/or to retain and incentivise key staff. They are very tax efficient for both the employer and employees!
And for you as a business it means you can offset both the cost of the scheme and the tax benefits achieved by your employees against your company’s tax liability.
Why offer an EMI share option?
- It’s an employee benefit that you can share in the offer package: Attract and retain top talent.
- Reward the employees who enable you to grow, give it their all and help make your business a success.
- Increased employee engagement
- Lower Tax
Why use Blu Sky to set up the scheme for you?
We’re experts. The rules are complicated.
It’s essential you agree a market value for the share options with HMRC before offering the share options to your employees.
This involves liaising with HMRC, to set out the proposed value of the shares. To qualify as a tax perk HMRC must grant the share options.
Set up the best option for you & the team
There’s lots of options on how the shares can be set up: right down to an employee having to meet a certain goal. We’ll guide you through that and make sure you have the right performance criteria and share offer balanced.
Can you offer an EMI scheme in your business?
More than likely, but there are certain criteria you need to fit:
- Have up to 249 employees
- Less than £30m in assets
- You can’t be in any of the following industries (banking, farming, property development, provision of legal services, shipbuilding, or leasing)
- Not majorly owned or controlled by another company
Employees also need to fit certain criteria:
- They must spend at least 25 hours per week or 75% of their total working time as a company employee.
- Not hold options worth more than £250,000
- They may not hold more than 30% of the company’s shares
If you’re not sure it’d be a fit for your business ask us for some advice! We’ve helped a lot of tech, digital and services business build amazing employee packages.