3 Reasons You Need Our EMI Expertise
Here’s why your company needs our expertise if you plan to use EMI:
The EMI rules are flexible – giving you options
The EMI scheme offers you considerable flexibility as to how the share options may be offered to your employees.
These options may, for example, be subject to certain performance conditions being met.
We can guide you to ensure the EMI scheme is as incentivising as possible.
The Tax rules are complicated
It’s important to agree a market value for the share options with HMRC before granting the share options to your employees.
This involves liaising with HMRC, setting out the rationale for the proposed value.
The share options must be granted in accordance with the detailed and complex HMRC rules in order to qualify for the tax perks.
Employee communications
The whole point of establishing an EMI scheme is to incentivise your employees.
It’s therefore crucial that your appointed advisor is aware of the need to ensure that the employees understand that EMI options offer huge potential value.
What Does It Cost And What’s Involved?
We can undertake an EMI-compliant valuation for a fee of £1,500 plus VAT
The process normally takes 5-6 weeks and has four simple steps.
Scheme Requirements
We discuss your requirements and then advise as to how best structure the scheme.
Examples of points that need to be agreed include the number of options to be granted, the class of share, the performance criteria that will need to be satisfied (if any), and the period of vesting.
Valuation
We calculate the company’s value for EMI purposes and ensure that you’re comfortable with the approach adopted.
We’ll then apply to HMRC for approval and agreement. Certain documents would be required from you to support this valuation.
Recording of Grant Options
Once HMRC has approved the valuation and the contracts are agreed, we’ll provide you with a Q&A to support you and your employees through the granting process.
Once contracts are signed and options granted, we’ll electronically notify HMRC of the grant of options.
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