Employee Share Incentives

Employee share incentives provide an opportunity to reward team members in a way that grows alongside the company. When employees have a stake in the business, they’re often more engaged and motivated, contributing positively to the company’s performance. These incentives can also be a tax-efficient part of a compensation package, providing benefits to both the business and the employees.

Our team works closely with business owners and management teams to develop tailored share incentives that support the company’s goals, balancing commercial strategy with employee motivation.

In the broadest sense, employee share incentives fall into one of two categories – tax-advantaged schemes and non-tax-advantaged schemes.

Our team can advise on tax-efficient share options, helping you implement schemes that minimise the tax implications associated with remunerating staff and maximise the benefits for both the company and its employees. For SME businesses, two of the most popular tax-advantaged schemes include:

Enterprise Management Incentive (EMI): EMI schemes are ideal for small to medium-sized businesses, offering substantial tax advantages for both the employer and employees. This scheme can be highly effective for high-growth companies looking to incentivise key personnel.

Company Share Option Plan (CSOP): CSOPs provide a flexible, tax-efficient share option for businesses of various sizes, enabling companies to grant share options with favourable tax treatment.

We begin by thoroughly reviewing your company’s details to confirm whether the eligibility criteria are met. Our team will then work to structure these incentives to best align with your business needs, maximising tax reliefs and clearly conveying the benefits to your employees.

If your company doesn’t qualify for a tax-advantaged scheme or has unique requirements, we can assist with setting up non-tax-advantaged share schemes. These alternatives still offer valuable ways to reward employees, though they do not provide the same tax benefits as approved schemes. Our team will ensure that these schemes are structured efficiently and are aligned with your strategic goals.

Accurate share valuations are crucial when implementing an employee share incentive, especially when considering the tax implications. Our team offer ad-hoc share valuation services both at the implementation phase and in ongoing compliance to prevent unexpected employer tax liabilities.

If you’re looking for reliable expertise with a down-to-earth approach, we’re here for you. Let’s start with a conversation—contact us today to discuss how we can help you achieve your goals.