Enterprise management Incentives
What Are Enterprise Management Incentives?
Which Businesses Can Offer Enterprise Management Incentive?
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.
Setting Up An EMI Share Option Scheme
It’s always advisable to have your share option scheme set up by a qualified tax advisor as it can have impacts on both Tax and NIC (National Insurance Contributions). A tax adviser can also provide guidance on the disposal of the shares acquired under EMI share options, Capital Gains Tax (CGT) may be payable on any return made.
For more information on an Enterprise Management Incentive scheme for your business, contact our team today on 0161 832 6221 or email email@example.com.