Employee Share Schemes and Ownership Trusts
Tax-efficient staff incentives and succession planning
Employee Share Schemes and Employee Ownership Trusts (EOTs) are increasingly popular options for either incentivising and retaining key staff, attracting high-calibre candidates to key roles, or planning succession ownership of a business to protect its employees.
We understand the importance of these schemes in driving employee engagement, incentivising performance and fostering a sense of ownership in the workplace. Our team of experienced accountants can guide you through the process of implementing these schemes, ensuring compliance with relevant legal and regulatory requirements, and optimising tax-efficiencies.
Whether you’re a small start-up or a large corporation, we can help you design and implement a successful Employee Share Scheme or Employee Ownership Trust that aligns with your business goals and culture.
This section of our website outlines some of the options available to you as a business owner. We are always here to help with advice on which scheme might be best suited to your business and guide you through the process to its successful conclusion.
What are the options?
EMIS are designed to retain and reward key staff and are particularly well-suited to owner managed businesses.
Growth Shares Schemes enable employees to acquire shares with a low starting value, their eventual value being linked to the company’s future growth.
An SIP is an all-employee share plan which provides statutory tax relief for employees directly acquiring shares in their company.
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.
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.
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.
An EOT is a path for a company to take when it is looking to transfer the ownership of the company to the employees and wider workforce, this is done via a trust.
EMIS are designed to retain and reward key staff and are particularly well-suited to owner managed businesses.
Growth Shares Schemes enable employees to acquire shares with a low starting value, their eventual value being linked to the company’s future growth.
An SIP is an all-employee share plan which provides statutory tax relief for employees directly acquiring shares in their company.
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.
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.
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.
An EOT is a path for a company to take when it is looking to transfer the ownership of the company to the employees and wider workforce, this is done via a trust.
Whichever option you decide is suitable for your business, Folkes Worton are here to help on 01384 376 964
Folkes Worton LLP Chartered Accountants
Accounting for the Future