Employee share schemes & company benefits
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. Our experienced team can help you identify and put in place the most suitable employee benefits for your business.
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
Talk to us about your employee benefits
Employee share schemes
What are 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.
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%.
Contact us about your employee benefits and share schemes.
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Business tax planning
We incorporate tax efficiency into your business planning, as well as taking care of returns and paperwork, leaving you more time to manage your business.