SMEs: How can I reward my employees with shares tax efficiently?

SMEs: How can I reward my employees with shares tax efficiently?

Are you confused about EMI, ESS and other share incentives arrangements? Which work well for SMEs and what are the design considerations you should take into account? Which arrangement will achieve your commercial objective whilst being tax efficient?

The current business climate, increasing employment taxes and lower company valuations have resulted in equity incentives becoming an effective tool for employers (from early stage companies to globally recognised names) to incentivise and retain employees. The grant of share options and other forms of share incentive can prove to be useful drivers for growth by protecting cash flow and aligning the interests of employees with those of business owners.

Our guide on “Share incentives: EMI options – overview of conditions and tax treatment” outlines the key conditions which need to be met and the tax treatment of Enterprise Management Incentive (EMI) options.

To download a copy of the guide please click here.

 

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