Share schemes

HM Revenue & Customs (HMRC) has approved a number of tax efficient and commercially attractive share and share option schemes. Amongst small and medium-sized companies, the most popular is the Enterprise Management Incentive (EMI) share option scheme.

An independent survey of employers and employees commissioned by HMRC recently on EMIs gave very positive and interesting findings:

• More than 92% of employers thought an EMI's most important feature was its use in retaining staff
• Nearly as important were its impact on staff motivation and its ability to engender a feeling of ownership
• The scheme's tax advantages were also seen as an important benefit for employers and employees alike
• Schemes used to help recruit key employees, to enhance salaries, or to help with cash flow problems were more likely to be in lieu of salary than as a supplement to salary
• On the other hand, schemes introduced for tax advantages, to improve staff motivation or to help with staff retention were more likely to be a supplement to salary

At Booth Ainsworth, our own internal experience confirms this research, and we have implemented EMI schemes for a number of our clients. If you want a full copy of the research, more information on share and share option schemes, or to find out how we can help you set up one of your own, why not see Contact Us, and get in touch?