We are involved regularly in advising companies on tax related share schemes approved by HMRC (including EMI, EBT, JSOP and EOT schemes), unapproved share schemes and other ways of rewarding staff, such as growth shares.
These schemes are used to incentivise employees through having a company structure which allows you to plan for your businesses future with a solid staff base. They are used to encourage employees, particularly key employees, to remain with the business and are an added incentive to achieve defined, long term business targets. This brings benefit to both the business and the individual employee and is especially useful for start-up businesses and businesses in the early stages.
Existing shareholders should be aware of and will often need advice on, the implications to them, as a shareholder, and the business on the consequences of extending share ownership to employees.
We take all this into account when we begin a relationship with you and learn about your business’ goals and how it operates so we can structure and draft any such scheme accordingly.
If you would like more information on share schemes, please contact a member of our Corporate team today.