Enterprise Management Incentives Schemes (EMI Schemes ): Major Changes for 2023

Enterprise Management Incentive Schemes ( EMI Schemes ), offer significant tax benefits for both companies and their employees by granting the right to shares in the company to employees in the most tax-efficient way (geared towards attracting and retaining employees).  Now the Government has brought in changes to the EMI qualifying conditions, aimed at simplifying the administration of these schemes. 

Would your business qualify?
Request the EMI Eligibility Questionnaire using the form at the bottom of this page.

What has changed and what has JPP Law done to adapt?  

Several important changes are now implemented in JPP Law’s Share Option documentation to reduce the complexity and length of these documents. 

From 6 April 2023: 

  • Businesses no longer need to detail restrictions on the shares acquired in a share option agreement on exercise of an EMI option.  
  • The requirement for businesses to declare that an employee has signed a working time declaration when issued with an EMI option has been removed. 

From 6 April 2024: 

  • The deadline for notifying an EMI option within 92 days following the date of option grant will be extended. In future, HMRC will need to be notified by 6 July following the end of each tax year, in line with the deadline for filing online share scheme returns. 


These changes will apply to all EMI options granted before 6 April 2023 that are yet to be exercised. The changes will not apply to options granted before 6 April 2023 which can be no longer exercised, for example, if they have lapsed or been cancelled.  

It should also be noted that while the requirement to make a working time declaration has been removed, the working time requirement still exists, i.e., employees are only eligible for EMI options if they spend 75% of their time or at least 25 hours per week working for the company. 

JP Irvine Corporate Lawyer and Share Options Expert at JPP Law comments, “These changes are brilliant – they have been updated already in HMRC technical rules.  At JPP Law we have already adjusted and reduced our share option paperwork in light of the changes.  At JPP Law, we have for years worked extensively and directly with HMRC on the rules around different employee share classes and this has given us the in-depth knowledge to help our clients implement the best share option scheme for their needs.” 

Could an Enterprise Management Incentives work for your business? 

EMI schemes can be hugely useful for growing companies who want to motivate their employees by offering a stake in the business. What’s more, they can help businesses attract candidates when it comes to recruitment.  

However, while these new measures should simplify the administration of EMI schemes for businesses, they can be complicated when setting up. Failure to comply with legal requirements are not uncommon and can result in increased professional costs and potential tax liabilities. 

Get the right advice at the outset. At JPP Law, over the past three years, we have helped many scaling businesses with the technical and legal requirements concerning share option schemes and can do the same for your business.  

Book a free 15-minute introductory call with an EMI Scheme Specialist or you can request the EMI eligibility questionnaire using the form below. 


    Related Reading

    EMI Schemes – Free Initial Legal Consultation
    What are EMI Share Schemes and how do they work?
    EMI Eligibility and the EMI Qualifying Conditions
    The Unapproved Share Option Scheme
    The Employee Share Scheme and EMI Scheme Rules

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