Employee benefits and share schemes

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Employee benefits can be a tax-efficient way to remunerate staff, particularly those who pay higher and additional rates of Income Tax.

The taxation of employment benefits is a complex area so ensuring that you comply with all the administrative obligations and plan in advance to minimise tax liabilities is essential.

Reporting to HMRC

Most employers have to complete P11D submissions to HMRC to disclose employee benefits.

We can help to:

  • assess if you need to complete P11Ds
  • advise on systems for reimbursing expenses
  • negotiate with HMRC if disagreements arise.

Employee share schemes

Employee share schemes are a popular way of attracting, retaining and incentivising employees. This helps to ensure you have the right people, who are highly motivated to deliver the company's success. Schemes available include:

  • Enterprise Management Incentives (EMI)
  • Share Incentive Plans
  • Approved Company Share Option Plans
  • Unapproved Share Option Plans

We will help you ensure that schemes suit your needs and get HMRC approval.

Case Study

The controlling shareholder of M Ltd wanted to recruit and incentivise a new Chief Executive Officer to achieve his aim of selling the company in three years’ time. Ellacotts was able to design an EMI share option plan setting key performance targets that, once met, allowed the new CEO to buy shares at a discounted price.  The share price was agreed with HMRC and the scheme kept within the EMI conditions so that no tax charges arose for the company or the CEO.  Even better, when the company is sold the CEO will only pay tax on the capital gain at 10%.

Related Services

  • Business and corporate tax planning
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