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Employee Share Scheme Options

Tax-efficient staff incentives and rewards

Welcome to our Employee Share Scheme page!

We understand that offering an Employee Share Scheme is a powerful tool for attracting and retaining talented employees. It allows your team members to become shareholders in your company, aligning their interests with the long-term success of your business.

Our expert team is here to guide you on the best option for your business, help you through the process and set up a successful share scheme for your organisation.

HERE to help

Helping you chose the right Employee Share Scheme for your business.

Call us on 01384 376 964

An Employee Share Scheme is a program that allows employees to acquire shares in the company they work for. It can be structured in various ways, such as stock options, stock purchase plans, or restricted stock units. The aim is to provide employees with a stake in the company’s ownership, fostering a sense of ownership and incentivising them to contribute to its growth and success.

Implementing an Employee Share Scheme offers several advantages for both the employees and the company. Some key benefits include:

  • Enhanced employee engagement and motivation: Employees who have a financial stake in the company are more likely to feel motivated and engaged, leading to improved productivity and performance.
  • Retention of top talent: Share schemes can serve as a valuable retention tool, as they provide employees with a long-term incentive to stay with the company and contribute to its growth.
  • Attraction of new talent: Offering an Employee Share Scheme can be an attractive proposition for prospective employees, especially those who seek opportunities to become shareholders and share in the company’s success.
  • Alignment of interests: By aligning the interests of employees with those of the company’s shareholders, an Employee Share Scheme promotes a sense of teamwork and collective success.

Our experienced accountancy professionals can assist you in every step of the process, from designing a suitable share scheme structure to ensuring compliance with relevant legal and regulatory requirements. Here are some ways we can help:

  • Scheme design and implementation: We can work closely with your team to understand your goals and design a share scheme that aligns with your organization’s objectives and culture.
  • Tax and legal considerations: Our experts will guide you through the complex tax and legal implications associated with implementing an Employee Share Scheme, ensuring compliance with applicable regulations.
  • Employee communications and education: We can help you communicate the details of the scheme to your employees effectively, ensuring they understand the benefits and requirements involved.
  • Ongoing administration and reporting: Our team can assist with the ongoing administration of the share scheme, including managing employee records, issuing statements, and providing the necessary reporting to regulatory authorities.

Yes, there are tax implications involved with Employee Share Schemes. The tax treatment may vary depending on the country and the specific structure of the scheme. Our accountancy experts will guide you through the tax considerations and help you understand the implications for both the company and the employees participating in the scheme.

To get started or learn more about implementing an Employee Share Scheme for your organisation, please contact us on 01384 376 964. Our experts will be happy to schedule a consultation and discuss your specific requirements.

Other Share Scheme Options

Share Incentive Plan (SIP)

An SIP is an all-employee share plan which provides statutory tax relief for employees directly acquiring shares in their company.

Save As You Earn Option Plan (SAYE)

An SAYE Option Plan is an all-employee plan which allows a company’s UK employees to acquire shares by first granting them options to acquire shares. A statutory tax relief means that they do not pay income tax or National Insurance (NI) on their gains.

Company Share Option Plan (CSOP)

A CSOP allows a company’s UK employees to acquire shares by first granting them options to acquire shares. A statutory tax relief means that they do not pay income tax or National Insurance (NICs) on their gains.

Unapproved Share Option and Long-Term Incentive Plans (LTIP)

Unlike the other schemes, any option gains (the amount by which the value of the shares on exercise exceeds the price paid to exercise the option) are normally subject to income tax, and often National Insurance (NI), when the option is exercised.

These four schemes are generally for larger and potentially quoted companies. If you are considering one of these options, please contact us on 01384 376 964 with your specific requirements.

Folkes Worton LLP Chartered Accountants
Accounting for the Future