There are very specific rules and regulations about EMI schemes. As specialists in all types of shares, we can guide you through the process to ensure the best possible outcomes for you and your staff.
EMI schemes are 100% supported by the Government, which means shareholders (and the companies who set them up) can enjoy generous tax advantages. Schemes like this are a huge help to SMEs because they act as an incentive to employees, while reducing the need to pay higher salaries.
Benefits of EMI Schemes
- More cost effective and affordable than awarding bonuses and pay rises
- No National Insurance contributions to pay
- Tax deductible
- Limited income tax liability for employees, either on conversion into real shares or company sale
- 10% discount to the current CGT rate
- Increased staff retention and motivation
- Staff feel more highly valued and integrated
Who can apply for an EMI Scheme?
As EMI schemes must be approved by HMRC, they have strict criteria which is why we provide a free eligibility questionnaire and a free legal consultation to help you assess if an EMI will work for your business. The first step is to request the EMI Eligibility Questionnaire. This needs to be completed and sent to the solicitor before booking a free consultation. Prior to the free consultation the solicitor will use the information on the questionnaire to assess if you meet the EMI qualifying conditions. During the call he will explain the outcome of the assessment and answer any questions you have about the suitability of the scheme for your business. If your business does not have EMI eligibility he can take you through the most appropriate options, including alternatives such as an Unapproved Share Option Scheme.
REQUEST THE EMI SCHEME ELIGIBILITY QUESTIONNAIRE
What are EMI Share Schemes and how do they work?
Enterprise Management Incentive (EMI) Share Schemes: Major Changes for 2023
EMI Eligibility and the EMI Qualifying Conditions
The Unapproved Share Option Scheme
The Employee Share Scheme and EMI Scheme Rules