Many companies consider providing shares or share options to key employees to help achieve corporate goals – such as profit growth; a sale of the business or even a flotation of the company’s shares on the stock market. When cash is tight, the use of share incentives can form a crucial part of an employee’s remuneration package and may be used to help recruit, retain and motivate key employees.
We have considerable experience in dealing with employee share incentives, and can assist in the design and implementation, operation, and ongoing HMRC compliance of the following share incentive arrangements:
• Enterprise Management Incentives (EMI) share option schemes;
• Unapproved share option plans;
• Share Incentive Plans and Save As You Earn Schemes;
• Growth Share plans;
• Long Term Incentive Plans; and
• Phantom Share Option plans.
Agreeing share valuations with HMRC when using an approved scheme is vital in understanding the tax implications. We can assist with ad-hoc share valuation projects for tax purposes and regularly undertake independent share scheme reviews (particularly on due diligence exercises) to ensure ongoing compliance and no unexpected PAYE or NIC liabilities.