Administration of the scheme
The options should be granted in writing between the company and the employee, stating the date at which the options are granted, the number of shares acquired and the price at which the options can be exercised.
Formal approval does not need to be obtained prior to beginning the scheme, however the company must notify HMRC within 92 days of the options being granted. HMRC then have a 12 month window following the 92 days to check the grant complies with EMI rules and to formally approve any share valuations in relation to the scheme. We recommend obtaining advance approval.
An annual return must be submitted within three months of the end of the tax year.