News
What constitutes a General Offer, and when is PAYE due?
Created May 3, 2013, 12:20 pm
The case of Hema Tailor v HMRC [2013] UKFTT 199 (TC) concerns the question of whether Pay As You Earn (PAYE) should be applied to the gain made on exercise of Save-As-You-Earn (SAYE) options, if not exercised “under” the scheme...
Top Tips For "Instant" Success
Created April 29, 2013, 11:53 am
It is starting to feel like this is the “year of the instant”: Instant filing, instant data and instant response. As workdays and nights continue to blur as we give instant replies to clients on the iPad or Blackberry, we..
"Recruit, Reward, Retain"
Created April 23, 2013, 2:32 pm
If anyone should know how best to attract and retain staff, it’s recruitment companies. People are not just the currency of the recruitment business; they’re also its single most valuable asset. Recruitment is a knowledge intensive industry, in which companies..
The Entrepreneur: Communicating a difficult message
Created April 23, 2013, 9:17 am
One of the most frequently asked and most deeply felt questions from leaders of businesses, is “how to communicate a difficult message?” For example, how do you communicate the need to improve efficiency or keep a tight rein on costs? It..
Directors' remuneration in listed (not AIM) companies
Created April 23, 2013, 9:07 am
Department for Business Innovation & Skills (BIS) commented on the draft regulations (see here) requiring fully listed (but not AIM) companies to hold binding shareholder votes on directors' salary. It also provides for an additional, but non-binding, shareholder vote on..
How to Successfully Manage Succession: The Default Retirement Age
Created April 22, 2013, 2:08 pm
In the UK, the need for companies to declare a default retirement age (DRA) was scrapped in October 2011, but how is this affecting businesses 18 months down the line?Based on statistics from a recent Eversheds survey, there appears to..
Employee Shareholder Contract Update
Created April 18, 2013, 5:30 pm
The Government has struggled to reinstate the controversial Employee Shareholder Contract, after it was originally rejected by the House of Lords on 20th March and again on 22nd April, but finally succeeded on a third attempt on 24th April, after..
Quoted Companies: Remuneration Principles and the FSA Code an update
Created March 28, 2013, 9:48 am
There are many codes, principles and guidance notes covering remuneration and share incentives. These provide the corporate governance framework for equity awards to employees by listed companies. Many of these guides have been updated in recent months and therefore we..
ICSA Guidance, IR35 & more: NEDs take care!
Created March 28, 2013, 9:24 am
ICSA GuidanceIn January of this year (2013), the Institute of Chartered Secretaries and Administrators (ICSA) circulated a guidance note on the liability of care, skill, and diligence of non-executive directors (NEDs). The guidance included steps that NEDs can take in..
The Entrepreneur: Two heads are better than one
Created March 28, 2013, 9:07 am
This month Andy Raynor explains: How the most successful entrepreneurs borrow the experience of others.It's often said that the life of an entrepreneur is a lonely path to tread and it's not hard to find entrepreneurs who have reached success..
Resident Evil? - New Statutory Test From 6th April
Created March 27, 2013, 3:56 pm
Resident Evil? - Thankfully not... The tax treatment of share option gains, as with other income and gains, depends on whether an individual is UK tax resident. In this article, Tax Advisory Partnership provides an explanation of the new Statutory..
Budget 2013 - Interesting news for employee ownership!
Created March 20, 2013, 6:16 pm
Here is a brief summary of some of the headline points arising from George Osborne's Budget on 20th March 2013, so far as they are relevant to share schemes and employee ownership. As always, the devil is in the detail and further guidance can..
Building Your Own Personal Brand - The Key To Great Sales
Created February 22, 2013, 4:41 pm
Branding, the process of creating an emotional connection to a company or product, has been the subject of many studies and much research. Most of that research has revolved around the companies who have a high or low reputation and..
Time To Exit? The 3-Year Cycle
Created February 22, 2013, 4:09 pm
You’ve decided that you want to sell your business next year or the year after. When you say, sell, that’s not the same as exit. You may well transfer the shares in your company to a new owner BUT that..
Buy Back: Into The Future for Company Repurchases of Own Shares
Created February 22, 2013, 12:20 pm
With a view to easing the introduction of the new Employee Shareholder contract, the Government has now (on 15 February 2013) published its response to the recent consultation about Employee Ownership and Share Buy Backs. RM2 were one of 43..
When are dividends and earnings the same thing?
Created February 22, 2013, 10:15 am
Please note: PA Holdings has now taken the decision not to appeal to the Supreme Court. The 2012 Court of Appeal case of HMRC vs. PA Holdings Ltd concerns the question of whether payments to employees were dividends, or earnings. This..
Start with the end in mind - Health check your business before negotiating a sale
Created February 22, 2013, 9:49 am
If someone wants to chat about buying your company, don't overlook an employee share scheme or it could cost you, your company, and your employees unexpectedly. Maybe out of the blue or maybe after some 'wooing', somebody looks like they want..
EMI Problem: Closed Door or Locked Door?
Created January 21, 2013, 9:47 am
The EMI legislation is complex and once you have set it up, there is no guarantee that you won’t inadvertently do something to negatively impact its approved status. Unfortunately there are a number of ways that the scheme benefits can be..
The Entrepreneur: Pressing the Right Buttons - The Consultative Way
Created January 18, 2013, 9:20 am
We have all heard the terminology about the so called "Hot Button." "You have to find the prospect's hot buttons..." "Push their hot buttons..." etc. In fact there have been countless books on this specific area of what we all..
Case Study: Imam-Sadeque vs. BlueBay Asset Management (Services) Ltd
Created January 18, 2013, 9:20 am
“Good” and “Bad” Leavers – a recent case highlights the need to consider the actions of a departing employee during garden leave. The recent High Court decision in Imam-Sadeque vs. BlueBay Asset Management (Services) Ltd [2012] EWHC 3511(QB) looked at whether an..
Key Tips To Successfully Getting Paid
Created January 18, 2013, 9:20 am
Some business owners struggle to reconcile the two different relationships of selling to clients and asking to be paid - it's a dilemma that's commonplace and if you feel this way, you're not alone. It's often felt that asking to..
Web Portals For Share Plans: Why HMRC Changes Mean These are Now Highly Desirable
Created January 18, 2013, 9:20 am
Following the introduction of the Electronic Communications Act 2000, HMRC accepts that communications to employees can be validly delivered by electronic means such as email or internet. For all-employee schemes like the Share Incentive Plan and SAYE, there must be a..
The Full Share Scheme Service: Disclosure in Accounts
Created December 18, 2012, 10:48 am
When a Company grants share options is it necessary to disclose this event in the Company's accounts. The level of disclosure required depends on whether the Company has adopted Financial Reporting Standard for Smaller Entities (FRSSE) accounting standard, or whether..
The Entrepreneurial Mind-set... It's a state of mind!
Created December 13, 2012, 12:12 pm
As a slight departure from my usual 'sales expert' blogs, this month I thought I'd write something slightly different, something more holistic and with a more entrepreneurial focus. Well, this is my advice to anyone who wants to build a business: Have the..
STOP PRESS!! Employees can get 10% tax rate without holding shares before exit
Created December 12, 2012, 9:46 am
Entrepreneurs' Relief and EMI is better than anyone expected - Option holding period now counts towards holding period for 10% tax rate! Christmas presents came early with the draft Finance Bill 2013, published on 11th December, with fabulous news for both..
Do you have a mortgage benefit?
Created December 12, 2012, 9:21 am
Most of your employees will need a mortgage at some point in their lives and it can be the source of considerable stress, leading to lower performance at work or 'presenteeism' if you are into your jargon! We specialise in..
Autumn Statement 2012 - A Share Scheme Perspective
Created December 5, 2012, 6:26 pm
After a busy year full of Government consultations on share related matters the Chancellor's Autumn Statement this year had been eagerly anticipated. Sadly after reviewing the Treasury Press Releases today it is clear that on many matters we are to..
The RM2 Partnership welcomes Fiona Bell as a Director
Created November 19, 2012, 1:38 pm
RM2 are delighted to announce that Fiona Bell has joined our business as a Director. Fiona joins RM2 from Memery Crystal LLP. Fiona is a qualified Solicitor, Chartered Tax Adviser and qualified Trust and Estate Practitioner. She has over 25 years'..
Real Time Information and the impact on Share Incentive Plans (and other share plans too!)
Created November 19, 2012, 11:37 am
HMRC is changing the way that businesses report PAYE and it is essential that where a share scheme is in operation the plan administrator (in-house or out-sourced) appreciates the payroll impact that this change might have. Under the current system employers..
End of Year Rewards
Created November 19, 2012, 11:35 am
End of year rewards and incentives are a great opportunity for a business to recognise personal performance and make a clear statement of acknowledgment to employees, preparing the ground for increased loyalty and performance in the year ahead. The run..
Superior Selling: A Recipe for Success
Created November 19, 2012, 11:15 am
Any entrepreneur will tell you that the ability to sell lies at the heart of success, however the term frightens the life out of many as it conjures images of unethical, smooth talking individuals manipulating others to get their own..
Share Valuation: is your business an elephant or a giraffe?
Created October 12, 2012, 12:00 pm
The headline grabber about new employee-owner contracts has attracted much commentary, including the observation that an employee would need to make an individual gain in excess of their current £10,600 annual Captial Gains Tax (CGT) exemption allowance before any additional..
Employee-Owner Contracts: The Employment Law Perspective
Created October 12, 2012, 10:35 am
Employment lawyers throughout the country were left gasping in astonishment this week following the recent announcement by the Chancellor, George Osborne, at the Conservative Party Conference of a new breed of employment contract, Employee Owner. By a strange quirk of..
Mastering The Ancient Art Of Negotiation: The Entrepreneurs' Way!
Created October 12, 2012, 9:16 am
Effective negotiating can entail a plethora of ideas, actions and techniques, primarily because the scope of negotiating can change dramatically from industry to industry. However, here is a framework you can use to help in almost any negotiating arena.IF YOU..
Attention is better than a cure
Created October 12, 2012, 8:59 am
According to the Employee Engagement Report 2011, less than one third of all employees can be classified as actively engaged at work. Put another way, statistics show that 66% of employees are disengaged and 60% are actively looking for work..
Shares for rights proposal attracts controversy
Created October 10, 2012, 9:08 am
During the Conservative Party annual Conference held in Birmingham this week, the Chancellor of the Exchequer, the Right Honourable George Osborne MP, publicised his plans for a new type of employment contract to be known as an owner-employee contract (now..
Do you treat your Part Time Workers Appropriately?
Created September 14, 2012, 9:40 am
The work/life balance is now an important feature of UK employment market practices, which often results in flexible and part-time working. Whilst it is sometimes difficult to accommodate, if employers get it right, this can often lead to loyal and..
Tipping the scales to attract talent - Share Schemes for Solicitors
Created September 14, 2012, 9:04 am
The carrot for ambitious, hard-working lawyers has always been partnership. Being made a partner promised status, a share of the profits and influence. For some, however, the lure of partnership has lost its appeal. In August, a survey by recruiter Laurence..
The Key Question: Should I have a share scheme?
Created September 13, 2012, 12:56 pm
As a share scheme provider you might expect us to write an article on which share scheme is right for you, however, this ignores a fundamental question. Before designing the 'right' share scheme, your objectives and whether or not the..
Are you undervaluing your part-timers?
Created September 13, 2012, 12:52 pm
Recent media coverage has highlighted the growing number of part-time staff in the UK. This had naturally awoken certain questions as to why, and how should employers adjust to accommodate this? Whilst it is important to recognise that the situation of..
Small Business EQUALS Big Significance
Created September 13, 2012, 11:57 am
There are 4.5 million SMEs making up 99% of all enterprises in the UK. London alone accounts for 748,000 of these enterprises, and the surrounding South East a further 745,000. Source: Department for Innovation and Skills Speaking as a fellow small business,..
Shock and awe: Overcoming a non objection
Created September 13, 2012, 11:52 am
In my last article, I wrote about overcoming price objections - a topic that attracted a lot of interest and clearly something that resonated with many readers. A price objection is one thing. However, if you reveal your pricing and ask..
EMI: The Gymnast of the Share Scheme
Created August 10, 2012, 9:07 am
Much like the incredible feats of the gymnastics teams at London 2012, the Enterprise Management Scheme (EMI) will stretch and flex in order to optimise success for your company. Set your goals and aim high The EMI scheme allows employers to freely..
To drop or not to drop; that is the question... Now, what's the answer?
Created August 9, 2012, 10:24 am
With the news from the Bank of England that the double dip recession is biting ever deeper, what better time than to introduce a blog about reducing your price to get a sale - with just a hint of caveat..
Team SME
Created August 7, 2012, 4:40 pm
With London 2012 upon us the time has come to watch the most elite athletes surpass seemingly insurmountable odds. Yet whilst they cannot choose the country they represent, or often which sport they have an almost supernatural gift in,..
Why Entrepreneurs need business mentors
Created July 12, 2012, 5:06 pm
Just in case you hadn't noticed, today's entrepreneur often seems to be wired up differently to the rest of the working population. Most notably, they possess an inherit ability to evaluate problems differently and to come up with innovative solutions...
Top Tips to get you through the last half of 2012
Created July 12, 2012, 4:22 pm
Real HR provides part-time HR Directors to mid-tier businesses. Rebecca Allen, has put together the following tips to get you through the rest of the year ahead, which will prevent the key talent in your business walking down the High..
How discretionary can a discretionary share plan be?
Created July 9, 2012, 3:19 pm
In December 2011 the Court of Appeal considered whether an employer had acted in a discriminatory way in allocating discretionary share options. The decision provides useful guidance to employers. In the case of Hosso v European Credit Management Ltd, the applicant's..
Calling all Spin-Outs: Academics to qualify for EMI options!
Created July 9, 2012, 3:09 pm
Further to the Budget 2012 announcements a consultation document was published by HMRC on June 27th proposing to extend access to the Enterprise Management Incentives (EMI) scheme for academic employees of qualifying companies. This is great news for small or..
Shareholder dilution - Does size still matter?
Created July 9, 2012, 3:06 pm
Share schemes are great motivation tools when the level of reward on offer is right, but how can you establish what the right amount is? As a director or shareholder, you need to be careful that you are not offering too..
Do you find age discrimination a grey area?
Created June 11, 2012, 4:11 pm
Nick Hine of Hine Legal identifies actions for employers in relation to workforce demographics. Lucy Kellaway (born 1959) of the Financial Times recently wrote an article for the BBC suggesting the solution to rising unemployment is for all employees to be..
Termination Payments: EMI Judgement Day
Created June 11, 2012, 3:54 pm
The recent decision by the First-tier Tribunal in Reid v HMRC [2012] UKFTT 182 (TC) is a timely reminder for employers and employees of the importance of carefully analysing the tax status of all elements of a termination payment. This..
Double Your Turnover in 2012...It's Still Possible!
Created June 11, 2012, 3:32 pm
Roger Wilson of Sales Growth Ltd provides tips for boosting sales. As your friendly community of part time Sales Directors, we've put together some salient thoughts on steps you can take to double your turnover before the year is out...
Red, White and Blue - Options on either side of the Atlantic
Created June 11, 2012, 2:24 pm
In keeping with the red, white and blue of this month's Jubilee celebrations we at RM2 thought we would highlight some matters regarding share options for companies expanding their operations across the pond. Those watching the Jubilee celebration concert will have..
EMI News Update
Created May 25, 2012, 11:33 am
As of the 16th June, the value of shares over which Enterprise Management Incentives (EMI) options can be granted to an individual will rise from the existing 120,000 limit, up to 250,000.The original announcement came in back in March when..
Share Scheme Tax Comparisons
Created May 24, 2012, 11:15 am
USOP versus EMI: What's the difference? Unless specific tax rules apply, any share-based benefit passing from an employer to an employee will habitually be subject to income tax and possibly also to national insurance contributions (NICs). It is usual for the..
Maximising the effectiveness of reward in tough economic times
Created May 9, 2012, 3:02 pm
Employee Benefits Advisers, Secondsight identify and provide solutions to the challenges to be overcome in implementing an effective reward scheme and how best to make sure it is clearly understood and received by employees. We asked HR professionals to tell us..
The Entrepreneur - Revenue Increase
Created May 9, 2012, 11:01 am
This month's entrepreneurial focus explores the best ways to increase your revenues. Firstly, sales are the lifeline of any business and should top the priority list for company owners. Sales need to be supported by everyone in the business but, sadly,..
Employee Ownership: A Great Succession Solution
Created May 9, 2012, 9:05 am
You may well be facing one of the most difficult business decisions you have ever had to make. What to do with your business now that you are in the twilight of your career? Pass it on to the family,..
Where have all the managers gone?
Created May 4, 2012, 9:33 am
Management resignation figures grow at an alarming rate In excess of 15% of managers in the UK resigned or changed job roles last year. Statistics from the 2012 National Management Survey, published by the Chartered Management Institute (CMI) and XpertHR, have..
You can do it, if you... B&Q share scheme benefits the company
Created May 4, 2012, 9:20 am
If you ever had questions regarding the positive effects share schemes can have on a business, B&Q's recent success has provided many of the answers. Three hundred store managers cashed in on shares worth £45,000 on 24th April 2012 thanks to..
The Entrepreneur - How to successfully grow your business
Created April 18, 2012, 11:07 am
Peter Turner, co-founder of the Entrepreneurs' Club London shares his insights into how to grow your business successfully. Through working with so many successful businesses, we have developed partnerships with people who can help businesses succeed. Because of this and our..
Calling all non-executives!
Created April 17, 2012, 10:34 am
Tax efficient approved share option schemes (including Enterprise Management Incentives and Company Share Options Plan) are great news if you are an employee. Such plans operate to place participants in the Capital Gains Tax (CGT) regime rather than in an..
Share Incentive Plan Tax Savings! The plan that's twice as nice!
Created April 17, 2012, 10:16 am
The default tax position for employees acquiring shares in their employer is a charge to income tax. This surprises some employers who think that shares must be capital assets and therefore taxed more favourably than cash no matter how the..
Great news for EMI but proceed with caution!
Created April 12, 2012, 3:57 pm
It didn't make the newspaper Budget headlines but the Treasury Budget press release contained some exciting news about imminent enhancements to Enterprise Management Incentives (EMI). From a date that is yet to be announced, the upper limit on the value of shares..
Budget 2012 Stop Press! Enhancement of Enterprise Management Incentives (EMI) imminent
Created March 22, 2012, 1:51 pm
It didn't make the newspaper Budget headlines but yesterday's Treasury press release contained some exciting news about imminent enhancementsto Enterprise Management Incentives (EMI). Buried in the Treasury notices is the statement that, from a date that is yet to be announced, the upper..
Looking East: The Changing Face of World Business
Created March 15, 2012, 11:11 am
We are finding that many of our clients are trading cross-border at a much earlier stage then has typically been the case in the past. Here, Paul Hancox of HSBC explains the growing power that Eastern countries are having within..
2012 - the year of the entrepreneur
Created March 15, 2012, 10:47 am
Gloomy economic forecasts and slumps of growth may seem discouraging, but 2012 is set to be the year of the entrepreneur! Reluctance from banks to lend means that attention has now been focused on other means to fillin the funding gap...
Data Protection for Employers- Monitoring Employee Activity & Recent Developments
Created March 15, 2012, 10:30 am
Lori Duckworth of Legal Edge explains the important issues surrounding Data Protection and the eight principles that businesses must follow to remain compliant using the example of Google. Data Protection: not necessarily the most exciting topic you'll deal with as an..
Changes afoot for Share Schemes
Created March 15, 2012, 10:14 am
On 6 March 2012 the Office of Tax Simplification (OTS) published their final report on the review of the tax advantaged employee share schemes available to UK employees. Namely the Enterprise Management Incentive (EMI), the Share Incentive Plan (SIP), the..
How to balance the books? - Share Schemes from the Finance Director's perspective
Created March 15, 2012, 9:49 am
In current economic times the Finance Director faces a real conundrum. How does he or she control their staff costs whilst keeping the level of productivity required for business continuity? With margins under severe pressure it often means that there is..
How to disqualify your EMI in 3 simple ways?
Created February 9, 2012, 9:47 am
So, you have set up your government approved, tax-efficient share option scheme the EMI. You have implemented it, communicated it to employees and most importantly registered the grant of options with HM Revenue & Customs within the prescribed 92 days..
How to achieve Entrepreneurs' Relief (10% tax) for option holders?
Created February 9, 2012, 9:21 am
In the good old days of Business Asset Taper Relief (BATR) the effective rate of CGT payable on the sale of shares could be reduced from 40% to 10% just two years after the grant (note, grant, not exercise) of..
0T tax code back with vengeance
Created February 9, 2012, 9:10 am
From 6th April 2011 new rules were introduced to apply a new 0T tax code in relation to payments made to departing employees after the P45 had been issued. This meant that employers needed to apply the new code and..
Was 2011 the Year of the Mobile?
Created February 8, 2012, 4:00 pm
Oliver Walker and Vimal Badiani from Periscopix review data from 2010 and/to 2011 to see if 2011 really was the year of the mobile, explain why a business website must be mobile friendly and make a prediction for 2012. At the..
The Responsible Director
Created February 8, 2012, 2:49 pm
Mark Supperstone, a partner of ReSolve, looks at the challenges facing businesses in today's tough economic environment and advises directors on what they need to do to prevent their business being a casualty of the recession. As anyone that reads a..
Share Scheme Jargon Explained
Created January 25, 2012, 10:15 am
The complexities involved in share scheme implementation and design are difficult enough to grasp despite the added complexity of technical jargon. We've taken the most commonly used share scheme jargon and simplified: Allot - Where a company issues new shares to a person,..
Money, Money, Money
Created January 13, 2012, 10:23 am
As Abba alluded to, we work long hours and yet there is never enough money. The office of national statistics says Brits work longer than our European counterparts plus we top the leader board for unpaid overtime! Bearing this in..
An exciting year ahead for the EIS and new SEIS
Created January 12, 2012, 2:54 pm
Chris Elmes of Enterprise Equity, explains recent favourable tax changes and how this can be beneficial for companies qualifying for EIS. The Chancellor's autumn statement last year confirmed the Government's intention on promoting the Enterprise Investment Scheme ('EIS'), in order to..
Our 10 New Years resolutions for businesses looking to grow in 2012
Created January 12, 2012, 10:27 am
Did you know that out of the all of the people that make New Year's resolutions only 12% manage to keep them! One of our own New Year's resolutions is to grow our RM2 Community page and we would be delighted..
Taking the psych out of psychometrics...
Created January 12, 2012, 10:20 am
Thomas International is a global leader in the field of behavioural and psychometric profiling. Here Alan Brown gives an insight into the world of psychometrics and how they can help grow businesses by optimising individual and team performace. What is psychometrics? Psychometrics..
Press release: RM2 joins the Baxi Partnership
Created January 10, 2012, 10:00 am
Today two market-leading specialists in employee ownership came together to create a unique destination for businesses who believe giving ownership to staff can drive superior performance. At a time when the Coalition Government is looking at ways to increase levels of..
The changed role of your Company Secretary and how RM2 can help
Created December 15, 2011, 12:10 pm
During the life of a share scheme we deal with many different people from a company including owners, the management team, employees, accountants and also the company secretary. The importance of the latter should not be underestimated. Role of the..
Mind the [Generation] Gap: how share schemes can help
Created December 14, 2011, 9:17 am
UK employers can no longer set a mandatory retirement age following the phasing out this year of the default retirement age, which enabled employers to force staff to retire at 65 years of age. This means fewer Baby-boomers are retiring..
VAT and Salary Sacrifice: Changes Ahead
Created December 13, 2011, 2:47 pm
Karen Mulcahy from The VAT Consultancy informs us of the changes ahead. Introduction The provision of salary sacrifice schemes was probably not anticipated in 1973 when VAT was first introduced in the UK and this is evident from the number of..
Exit strategies
Created December 13, 2011, 2:45 pm
Hugh Fenton, Director of Pro-Actions (Kent) talks us through the planning stages of putting in place an exit strategy. How many times have you heard business people say my business is my pension? Unfortunately, too frequently, and unfortunately too many find..
Raising Capital- What investors need to know?
Created December 13, 2011, 2:44 pm
Graeme Dixon of Route to Funding sets out what investors look for in companies seeking investment and highlights the importance of a business plan. There are many things investors want to know and it is one of the reasons why a..
Christmas Crackers: key moments of 2011
Created December 13, 2011, 2:41 pm
Here is a round-up of some of the key share scheme news of 2011! Entrepreneurs Relief. This special 10 per cent rate of tax is now available on lifetime gains of up to £10 million. It is available to officers..
Social Media- avoiding the pitfalls and making it work for your business
Created November 1, 2011, 11:56 am
Joanna Atkinson of JMA HR & Legal Ltd considers the employment law and HR issues for businesses arising out of the growing popularity of social media.Whatever your attitude to social media, whether you engage in blogging and tweeting on a..
Location, Location, Taxation!
Created October 31, 2011, 4:10 pm
Tax savings for second-home owners Manju Ghosh, Senior Tax Manager at Rouse Partners explains more about the tax issues surrounding second homes. With aspirations to purchase buy-to-let and holiday homes increasing and changes in society leading to later marriages and more divorces,..
Top 5 reasons not to implement an employee share scheme
Created October 31, 2011, 3:28 pm
Employee share schemes are not right for every company, but in many cases a share based incentive scheme is the obvious choice for attracting, motivating and retaining employees. They can also deliver major tax advantages. Yet sometimes companies..
Share scheme Ebuyer?
Created October 31, 2011, 3:11 pm
As the use of cheques has declined is it now time to consider more modern payment methods, like PayPal, in share plan administration? The use of cheques has declined by as much as 40 per cent in the last five years..
Retain top talent or it's GAME OVER
Created October 31, 2011, 3:00 pm
Liz Hunter, Associate Director at The RM2 Partnership Ltd, looks at the challenges facing UK gaming companies and why they now need to work hard and think creatively to retain their top talent. There was concern amongst the gaming industry following..
A Bloomin Opportunity for CSR
Created October 28, 2011, 3:09 pm
Amanda Boyle of Bloom VC talks about the importance of crowdfunding and the impact it has on a business and its CSR. We all know times are tough, and the current economic situation is making the growth of new businesses and..
Family-Friendly: What's It All About?
Created October 7, 2011, 3:06 pm
Ben Black of My Family Care explains the importance of being family friendly and offers some tips on amending the company culture. There's a lot of press and a host of awards pushing the case for employers to be nice to..
Employee Benefit Trusts-Triple tax benefits
Created October 7, 2011, 1:13 pm
Following on from our article on Share buy-backs last month we now look at how Employee Benefit Trusts (EBTs) can be used to help shareholders realise value for their shares before an exit. If the shareholder sells back to the company..
Motivation vs Greed
Created October 7, 2011, 11:39 am
"Greed is good", said Gordon Gekko, played by Michael Douglas in the iconic movie Wall Street. But in the real world, according to Vince Cable, ridiculous levels of remuneration are going unchallenged as the norm. Is Vince right, and if..
Build your own Share Scheme
Created October 7, 2011, 9:19 am
Thinking of implementing your own share scheme? In this note we set out a summary of the matters to consider. Objectives First, clarify your objectives. Questions to ask include: Is the scheme intended to reward a specific group of employees..
A Dragon's Perspective
Created September 8, 2011, 11:41 am
James Caan, serial entrepreneur, former Dragon and the force behind ground- breaking recruitment company Webrecruit says: before you start thinking about attracting new candidates, it's a good idea to first make sure you are not actually losing your best people.This..
Supreme Court Ruling Delivers Blow To Self Employment Status
Created September 7, 2011, 2:27 pm
WMT explains the importance of determining employment status, based on the recent ruling of the case Autoclenz Ltd v Belcher & Others. The Supreme Court has delivered its long awaited ruling regarding the employment status of valets working for Autoclenz (Autoclenz..
Intellectual property: a starting point for young companies
Created September 7, 2011, 11:14 am
Patricia Barclay explains the importance of protecting your intellectual property and well crafted licences. The most valuable parts of any young business will normally be its ideas so it makes sense to take steps to protect and grow these assets. These..
A share scheme by Christmas?
Created September 7, 2011, 8:54 am
If you think it is too soon to be thinking about Christmas then think again! Here at RM2 we have already been inundated by restaurants touting their staff Christmas party offerings. This is also a time of year when many companies..
Share buy-backs: the good, the bad and the ugly!
Created September 6, 2011, 3:34 pm
In private companies it may be difficult for the shareholders to exit without a company sale. Management may want to take over but do not have the required cash to buy shares in the company and if shares are gifted..
New recruit
Created September 6, 2011, 3:31 pm
Lucy O'Gorman: We are pleased to announce that Lucy has joined the team at the RM2 Partnership as our newest Associate. Lucy recently graduated with a degree in Law from the University of Surrey and has experience working with a number..
Data Protection is common sense
Created August 4, 2011, 10:58 am
Robert May, Managing Director of IT solutions consultancy ramsac explains the importance of data protection and the ways in which you can secure your data using simple, yet effective steps.With the holiday season finally here and numerous events and activities..
It gets worse for SAYE schemes: Time to switch?
Created August 4, 2011, 9:18 am
As a nation we are renowned for wanting the best deal, whether this is on our insurance policies, credit cards, utility suppliers, mortgage etc, but when it comes to some products there is a reluctance to switch. I have yet..
Share Scheme Success for Sports Direct
Created August 3, 2011, 3:41 pm
There are huge benefits to be had by implementing a share scheme. Employee engagement is said to be the key to a happy and motivated workforce and what better way to get employees engaged than by making them a part..
HMRC runs out of paper
Created August 3, 2011, 1:44 pm
A recent article stated that HM Revenue & Customs had failed to order enough paper to print its self assessment statements. This surely must be a reminder of the responsibility we have as individuals of ensuring our tax affairs are..
New appointment: Sarah Anderson
Created July 28, 2011, 1:04 pm
Sarah Anderson: We are pleased to announce that Sarah, an experienced share scheme solicitor, has joined the team at the RM2 Partnership.Sarah has worked at senior level in several City law firms in the design and implementation of employee share..
What's it worth? When private company shares must be valued
Created July 7, 2011, 2:57 pm
Many private companies are still unaware of the substantial tax and cash flow benefits that can be obtained from employee share schemes. But as part of the process of introducing a scheme it is usually necessary to agree a tax..
Share Scheme Administration-beware of DIY!
Created July 7, 2011, 1:11 pm
Employee share schemes are complicated. Badly administered schemes can cost companies dearly in terms of wasted time and effort, as well as the possible penalties and fines from HMRC. In addition, a poorly administered scheme may lose the confidence of..
Making Share Schemes more Simples
Created July 5, 2011, 2:54 pm
The independent Office of Tax Simplification (OTS) was established a year ago this month to provide advice to the Chancellor on options to improve and simplify the UK's tax system. David Jack, the Chairman of the OTS, has now written..
Many happy returns- or else
Created July 5, 2011, 9:05 am
The number of companies offering employee share schemes is rising strongly every year. And so is the number of companies who fail to submit the correct returns to HM Revenue & Customs. The deadline for the tax year 2010 -2011..
Limited Liability Partnerships Corporate Partners A Commercial and Tax Opportunity?
Created July 1, 2011, 1:48 pm
Andrew Maidstone of Charnwood Accountants and Business Advisers LLP suggests how an LLP structure may make not just commercial sense for your business, but also offer potential tax savings. Professional firms such as recruitment businesses, architects, solicitors and accountants have..
Social Media- Have you claimed your market share?
Created June 30, 2011, 9:24 am
Louise Siwoku of Scarlett Office Services provides an insight into the growing need for a Social Media presence and asks whether a business can afford not to have one.Social Media business phenomenon or flash in the pan??? You decide. Twitter claim..
Start-Ups: using equity to build teams
Created June 2, 2011, 12:28 pm
Many entrepreneurs find starting up in business hard and lonely. A key problem is assembling a quality team at a time when the future is uncertain and cash is in short supply.Increasingly, start up entrepreneurs (and their backers) are turning..
All together now - what would it mean if everyone was an owner?
Created June 2, 2011, 10:52 am
Baxi Partnership is a unique organisation who specialise in supporting the creation and growth of strong, employee owned businesses.Have you ever contemplated moving to full employee ownership? If you have considered a share scheme to encourage some of your staff..
Succession Planning with Employee Trusts
Created June 2, 2011, 8:46 am
Individual shareholders in private companies sometimes get locked in they would like to obtain value for their shares but have no obvious means of doing so. It is rare for a private shareholder to sell a minority holding to a..
French tax reforms trouble brewing for holiday home-owners?
Created June 1, 2011, 9:44 am
Update: Please note the French government have now decided to drop the below legislation. 21.06.11 Julian Brooks, Tax Consultant at the Tax Advisory Partnership highlights the possibility of a 20% tax on French properties owned by UK residents being introduced.As a..
Trustee decisions must stand despite bad advice
Created May 31, 2011, 2:23 pm
Trustees of discretionary trusts (such as most employee benefit trusts) sometimes face difficult technical issues when exercising their discretion in favour of one of more beneficiaries. And sometime they get it wrong.For over 35 years, however, nervous trustees have been..
Chamber of Horrors
Created May 5, 2011, 4:27 pm
Here at RM2 we felt that we should warn you as to how some companies are getting it so wrong with their Employee Share Schemes, despite having 'Professional Advice'.Whilst it is always advisable to seek professional advice, be warned that..
Generating wealth through equity incentive schemes: A response to Pension Allowances
Created May 5, 2011, 9:44 am
The new limits on pension contributions and individual pension funds, of £50,000 and £1.5 million respectively, are driving more senior employees to search for additional ways to accumulate wealth and save tax.In the right circumstances, equity incentive schemes offered by..
New HMRC pronouncements on EBTs: what they really mean
Created May 3, 2011, 12:29 pm
On 31st March HM Revenue & Customs published proposed new regulations creating a charge to income tax when assets are earmarked by trusts or other third parties for the benefit of employees. In our April Newsletter we made it clear..
Lifetime allowance pension planning
Created May 3, 2011, 9:47 am
Black Tower Financial Advisors looks at the recent changes to the lifetime allowance for pensions and some of the available solutions.The lifetime allowance (LA) for pensions is being reduced and those with large pension funds may get caught out if..
Apprentices are inappropriate for organisations? We don't think so
Created April 26, 2011, 9:40 am
The CIPD has conducted research into employers' views on apprenticeships and the number of such schemes available throughout the UK. The results suggest that many employers consider taking an apprentice to be inappropriate for their organisation. The reason for this..
Third party remuneration-Kafka lives!
Created April 6, 2011, 2:39 pm
Literary-minded readers of this newsletter will recall the works of Franz Kafka, the Czech novelist writing at the beginning of the 20th Century. Probably his best known work is The Trial, which concerns the tribulations of a man subjected to..
Unquoted US stock options-hidden perils
Created April 6, 2011, 10:00 am
Quite a few of our UK clients have subsidiaries or operations in the US and offer stock options to their US employees to mirror the incentive arrangements they have in the UK. However companies considering the offer of stock options..
New PAYE stealth tax spares employee share schemes
Created April 5, 2011, 3:04 pm
From 6th April 2011 new rules are being introduced in relation to payments made to leaving employees after the P45 has been issued. It comes as no surprise that these arrangements work to the advantage of HMRC; in particular they..
RM2 brings home the bubbly at the Ideas Initiative
Created April 1, 2011, 3:22 pm
Last night (31st March) was the second edition of the increasingly successful Ideas Initiative, a concept developed by a set of local businesses including the RM2 Partnership, Ramsac (IT Consultancy), Hart Brown (Law Firm), Lloyds TSB (Banking), Roffe Swayne (Chartered..
Share scheme taxes: calm before the storm?
Created March 15, 2011, 9:09 am
In July last year George Osborne set up the Office of Tax Simplification (OTS). It has now issued two reports: a review of tax reliefs, and an interim review of small business taxation. Those of us involved..
Tax Strategies in a high tax environment
Created March 4, 2011, 1:27 pm
Paul Windsor, Partner at WSM Partners LLP highlights the need for tax strategy in a high tax environment.The era of the Additional Rate Tax has now been in place for almost a year. Partners and the self employed, in fact..
Equity Incentives: Top Tax Tips (part 2)
Created February 28, 2011, 2:04 pm
Last month we offered our top tips for claiming entrepreneur's relief on share scheme gains, and maximising corporation tax relief. This month, we look at the taxation of employee trusts and how to avoid some nasty tax pitfalls. There are several..
Default Retirement Age: Has the sun set on this good leaver provision?
Created February 28, 2011, 10:07 am
Currently, an employer can specify a default age of not less than 65 by when employees retire. Employees have the right to request to stay longer, and the employer must consider the request, but there is no obligation on..
How to make sure your scheme (and staff) are Auto-Enrolment ready
Created February 25, 2011, 10:19 am
David Pugh of RM2 Client Foster Denovo asks: are your pension schemes and more importantly your staff, ready for auto-enrolment?Do you know your AE Day? That's the 'staging date' on which, by law, you must start deducting pension contributions from..
Europe's big new boost for employee share schemes
Created February 24, 2011, 2:59 pm
On 17th February the European Economic and Social Committee published details of a major new initiative designed to encourage employee share ownership across Europe. The Committee aims to kick-start the application of Employee financial participation (EFP) at various levels, such as..
Director's Shareholder Protection
Created February 24, 2011, 9:24 am
Michael Aitken, Founder and Managing Director of Magus Financial Management, explains why Director's Shareholder Protection is crucial for business stability.It is a common fact that entrepreneurs are generally positive forward thinking people. The cup is usually half full if not..
Case Study: Waterfall Solutions
Created February 15, 2011, 9:13 am
In 2005, RM2 designed and implemented an Enterprise Management Incentive (EMI) plan for Waterfall Solutions (Waterfall) to match its objectives of retaining, incentivising and motivating key members of staff. The company is a provider of cutting edge technology for the..
SAYE Share Options: There are better deals out there
Created February 9, 2011, 1:07 pm
From 27th February 2011, the effective rates of interest on SAYE share option schemes are changing. The rates remain derisory, however. Meanwhile the schemes face other difficulties, namely overcharging by savings carriers and attack from unsympathetic accounting standards...
Equity incentives: Top Tax Tips (part 1)
Created February 4, 2011, 3:47 pm
For many companies, share option schemes are now a core element of remuneration strategy. Their principal uses are to help encourage loyalty and focus attention on building performance and shareholder value. But, if the schemes are well designed, they can..
FSA Remuneration Code: emphasis on share incentives
Created February 4, 2011, 3:30 pm
At long last the FSA has come up with a remuneration code designed for fat cat bankers and fund managers. But will this have any effect on their behaviour will it, for example, help to curb their excessive risk-taking or..
Mums, Dads and Employee Share Schemes
Created January 31, 2011, 12:13 pm
The Coalition's proposal to change the parental leave entitlement has met with mixed reviews. But how these affect the operation of employee share schemes?Under the proposed changes a mother returning to work before the end of maternity leave will be..
This is no time to be doing business-as-usual...
Created January 31, 2011, 10:39 am
Steve Gilroy, Chief-Executive of Vistage International identifies three areas which businesses need to focus on during these difficult times.For most of us in business, the past couple of years have created a new business landscape that is unlike anything we..
Pay trends in 2011
Created January 25, 2011, 1:01 pm
Deborah Rees of Innecto Consulting discusses their predictions for pay trends in 2011 and the reasons behind them. Most sources believe that the UK Economy will continue to grow in 2011, that company profits will increase, and that the prices of..
Employee Benefit Trusts: looking to the future
Created January 10, 2011, 9:08 am
On 9th December the government announced new measures to counter disguised remuneration using employee trusts and similar vehicles such as unapproved pension funds. The measures seek to block schemes where the funds can earmark assets for the use of individuals,..
Top Tips on enhancing your software cost effectively
Created January 8, 2011, 1:56 pm
Thomas Jeffs is the co-founder and Chief Technology Officer of Lucidica, specialists in providing IT support, consulting and training to SME businesses with up to 50 employees. With Microsoft Office on volume licensing now topping £500 a copy, and Adobe Suites..
Share incentives: navigating the dead zone for small PLCs
Created January 4, 2011, 3:17 pm
The importance of equity incentives seldom diminishes as companies grow in size. For those companies making the transition from limited company status to PLCs, there are special challenges in relation to share based incentive schemes. Why do these arise? Generally the..
Why should we motivate our staff?
Created December 22, 2010, 11:53 am
Anastasia Gordon, Communications Consultant at Smithbrook Partners discusses the need for staff motivation and identifies the key areas to focus on when affecting change in your business.Your people are your most valuable asset and your business is only as successful..
Finance (No.2) Bill - What will it mean for EMI plans?
Created December 17, 2010, 12:35 pm
The Finance (no.2) Bill received Royal Assent on the 16th December 2010 and has an impact on the operation of Enterprise Management Incentives (EMI). The Finance (no.2) Bill is one fairly described by the phrase all encompassing, covering aspects from..
Employee share schemes fostering shared goals
Created December 8, 2010, 2:26 pm
The Chartered Institute of Personnel and Development (CIPD) has published a report this week which investigates the relationship between an organisation's perceived purpose and the morale and effectiveness of the employees in relation to this. The CIPD in fact refer..
Make the most of your nil rate IHT band
Created December 1, 2010, 9:32 am
Richard Monkcom, a Partner of Druces LLP, and Adam Hayward, Trainee Solicitor, explain how individuals can make the most of their nil rate IHT band through the careful use of trusts. Since 2006 the rules relating to Trusts have been changed..
The shortcomings of Finance Directors and Accounting Professionals
Created November 30, 2010, 11:37 am
Maurice O'Shea, Managing Principal from The FD Centre for the South East describes the shortcomings he often finds with Finance Directors and Accounting Professionals.Looking back over the businesses I have met in the last three months, I'm struck that I..
HMRC cuts: what they mean for share schemes
Created November 30, 2010, 9:17 am
Over the last five years HM Revenue & Customs has lost more than 30,000 jobs, most of which have resulted from the merger of the former Inland Revenue with Customs and Excise. Leslie Straithie, HMRC's Chief-Executive, has recently announced that..
Why options expensing is wrong
Created November 17, 2010, 10:32 am
A recent case involving one of our clients has again brought home the absurdity of the expensing rules introduced by accounting regulators in relation to employee share schemes. Recently, our client made an award of nil cost EMI share options with..
Employee share schemes - Top 5 mistakes by VCs
Created November 15, 2010, 3:57 pm
Venture capitalists have a keen interest in the success of their investee companies. Usually, this depends on the initiative, drive and loyalty of the management teams. Therefore, VC investors take extra care to ensure that the members of those teams..
The 50% tax rate: dealing with share scheme anomalies
Created October 28, 2010, 8:55 am
The introduction in April 2010 of the new 50% rate of income tax has created an anomaly for some share schemes where the gains are subject to PAYE. Situations where the problem could arise include the exercise of unapproved options..
Making the most of R&D tax credits
Created October 27, 2010, 3:39 pm
Brian Williamson, a director of Jumpstart Ltd, takes a look at R&D tax credits and finds that many companies are missing out. A significant barrier to accessing R&D tax credits is that many companies do not believe they are eligible..
Employee Share Schemes-How Many Shares?
Created October 27, 2010, 9:23 am
Employee share schemes work by aligning employee interests with those of shareholders, so helping to maximise shareholder value. The tax and cash flow savings can also be attractive. But how should companies decide how many shares to offer? Whatever the scheme,..
Case Study: Success
Created October 25, 2010, 9:05 am
We thought we would highlight the spectacular results that can sometimes be achieved with employee share schemes by means of a case study from our files. A wireless payment company wanted to incentivise senior staff to build shareholder value ahead of..
Case Study: Project Resource
Created October 20, 2010, 3:31 pm
Project Resource is a recruitment company specialising in the fields of construction, infrastructure and civil engineering recruitment. They began trading in 2002 and have since then continued to grow to a staff of 40+ with both a Reading recruitment office and a..
Share Option Schemes - Avoiding Contractual Liability
Created October 13, 2010, 11:36 am
Jo Atkinson of JMA HR & Legal considers how best to avoid unwanted linkage between your share scheme and your employees' contractual rights. So you have decided to introduce a share option scheme for the benefit of all or some of..
The Five key reasons why companies offer employee share schemes
Created October 12, 2010, 10:05 am
At RM2 we have implemented hundreds of employee share schemes for companies of every size, in every sector of industry and commerce. Every scheme we design and implement is uniquely tailored to the precise circumstances of the client. Yet, when..
FTSE 100 proves EOBs out-performance
Created October 1, 2010, 12:14 pm
Field Fisher Waterhouse LLP have this week published in their UK Employee Ownership Index (EOI) the results of the first half of 2010 for the FTSE 100, and it looks like employee owned companies are coming out on top.In the..
HMRC to target anti-avoidance trusts
Created September 24, 2010, 3:40 pm
News this week from the Lib Dem Conference that 900 million is to be made available to HMRC to tighten up controls on anti-avoidance has created somewhat unnecessary mixed messages regarding the future of Employee Benefit Trusts (EBTs).Rob Crossland, Chief..
Using HMRC Valuation Methods to Boost Employee Rewards
Created September 21, 2010, 3:43 pm
The benefits of employee share schemes are well known. In addition to being a proven tool for retaining and motivating employees, they can also offer large tax savings and help conserve cash.Increasing numbers of private companies are using the schemes..
Entrepreneurs' Relief: wider benefits for share schemes
Created September 13, 2010, 10:35 am
Nobody likes a tax rise, and the increase in capital gains tax (CGT) announced in the 2010 Budget was no exception. However, there was some good news: the retention of Entrepreneurs' Relief and the increase in the lifetime limit to £10..
Employee Owned Businesses-the way forward?
Created September 3, 2010, 4:19 pm
A report recently released by the John Lewis Partnership and Cass Business School has highlighted the growing benefit to be found in employee owned businesses (EOBs). The report suggests that EOBs with less than 75 staff are bringing in far..
Growing interest in LLPs
Created August 25, 2010, 4:36 pm
A growing number of companies are approaching RM2 for advice in setting up flexible equity reward structures through Limited Liability Partnerships (LLPs). There are several benefits from doing so. Offering an equity interest in a partnership is often easier and more..
Share schemes in the new tax environment
Created July 28, 2010, 3:56 pm
Now that the dust has settled, the implications for employee share schemes have become clear. For higher earners, we are in a new environment. The top official rate of income tax is 50 per cent. and between £100,000 and £112,950 is..
Prospectus exemptions extended for employee shares
Created July 23, 2010, 12:54 pm
The EU Prospectus Directive (the PD) requires any company who is offering shares to the public to provide a prospectus to that investor. On 17 June 2010 the European Parliament approved a directive which will amend the PD. A..
Graduation Day!
Created July 22, 2010, 8:49 am
We are proud to announce that James Lindon has recently been admitted as an Associate of the Institute of Chartered Secretaries and Administrators (ICSA), and as a result is now a qualified Chartered Secretary (ACIS). RM2's mission has always been to..
Employee trust is key to motivation
Created July 21, 2010, 10:47 am
A recent survey looking into employee engagement has found that only 24% of employees in the UK are engaged in their job, showing the important challenge that employers are now facing. The white paper highlighted key points for improving the situation..
Company flotation brings joy to JSOP participants
Created July 7, 2010, 2:38 pm
The successful online grocery retailer, Ocado, is due to float on the stock market in a few weeks when founders will share a £430m outcome. Ocado have priced their shares at between 200p and 275p which would give them..
Coalition budget: major advantages remain for employee share schemes
Created June 22, 2010, 4:16 pm
The Budget decision to raise the top rate of capital gains tax to 28 per cent. still leaves major advantages for most employee share schemes. The new rate is still well below the higher rates payable on income. The national insurance..
Bonus scheme operating after dismissal
Created May 28, 2010, 4:02 pm
The High Court recently heard a case regarding a discretionary bonus for a former employee. The Court held that when an employee is no longer employed by the Company, it is not implied that the former employee is not entitled..
Capital Gains Tax - the Coalition proposals
Created May 25, 2010, 11:47 pm
The Programme for Government issued by the Coalition included some proposals for changes to capital gains tax. However very little information has been released to date and this has caused uncertainty for business owners, company directors and participants in employee..
CGT to soar but concessions for business activities.
Created May 12, 2010, 5:20 pm
The Conservative Party and the Liberal Democrats have released the full text of their coalition agreement. It indicates that CGT will rise to at or near income tax rates, but that there will be generous exemptions for entrepreneurial business activities. The..
Equity compensation for NEDs
Created May 5, 2010, 12:58 pm
Non-executive directors often get the short end of the stick when it comes to equity rewards. Although they are not normally employees, any share-based gains they receive for their services are deemed employment-related securities for tax purposes. These are normally..
Employee share schemes - affordable and widespread
Created May 4, 2010, 4:12 pm
An independent review of employee engagement carried out by the Department of Business Innovation & Skills found that one of the most important aspects is the relationship between employer and employee. A simple and cost effective way of improving this..
Football fans to become shareholders?
Created April 21, 2010, 4:02 pm
There have been a number of recent articles in the press about vehicles which enable football fans to become shareholders of their clubs. The political parties are now identifying this pool as a potential electoral demographic. Trusts have already been set..
Employee Share Schemes and the Election: What do the three main parties have in common?
Created April 20, 2010, 10:18 am
The answer is strong support for employee ownership. A statement released by Employee Ownership Association (EOA) welcomes this and looks forward to ensuring these pledges mean results. EOA has research to show employee owned businesses are more resilient and have a..
Employee share schemes drive shareholder value
Created April 15, 2010, 1:07 pm
Over the last ten years, share prices for companies with more than 10 per cent. employee ownership have dramatically out-performed the rest of the FTSE All-Share Index. The UK Employee Ownership Index published by Field Fisher Waterhouse LLP, shows that an..
Every little really does help for Tescos SAYE scheme participants
Created April 9, 2010, 4:04 pm
More than 55,000 employees of Tesco have seen the benefits of the Employee Share Scheme which was put in place. Participants of Tesco's SAYE scheme contributed between £5 - £50 per month for 3 or 5 years and are now..
RM2 gain new Associate
Created April 7, 2010, 4:18 pm
RM2 are proud to announce that Alex Warren LLB has joined the team as a Regional Associate. Alex is a founder of Yellow Brick Road Consulting which offers a wide range of finance solutions for businesses in the SME space. His..
Extra CGT relief provides massive boost for share schemes
Created March 25, 2010, 2:56 pm
The Chancellor's decision yesterday to double the lifetime limit for Entrepreneur's relief from £1 million to £2 million means that many more participants in employee share schemes will be able to shelter their gains at the concessionary effective rate of..
Employee share scheme nets huge gains
Created March 25, 2010, 10:32 am
Directors and employees of Verrus, a mobile payment technology provider, have seen themselves £10 million richer after a sale of the company to PayPoint for £33 million. The sale triggered the exercise of options under a tax-efficient employee share scheme which..
The Phantom Budget 2010: minor measures against share scheme avoidance
Created March 24, 2010, 5:09 pm
The anti-avoidance measures announced today relate particularly to the Share Incentive Plan (SIP) and the Company Share Option Plan (CSOP). The basic tax advantages of these and other government sponsored schemes, including the Enterprise Management Incentive and the Savings Related..
RM2 gains Share Scheme quality award!
Created March 23, 2010, 12:57 pm
Following a full quality audit, we are pleased to report that we have retained our ISO 9001:2008 quality accreditation for the design, implementation and administration of employee share schemes, including the Enterprise Management Incentive, Share Incentive Plan and Company Share..
Associate Director from RSM Tenon Group moves to RM2
Created March 17, 2010, 2:21 pm
RM2 is delighted to announce that Elisabeth Hunter has been appointed as a Senior Associate. Liz is a high level tax advisor with specialist knowledge of employee share schemes gained through senior positions with Tenon and Chiltern plc (now part of..
Former PwC share scheme specialist joins RM2
Created March 15, 2010, 3:18 pm
RM2 are very pleased to announce that John Cowling has been appointed as a Senior Associate. Having originally qualified as a lawyer in London, John spent over 20 years as a senior tax manager with PricewaterhouseCoopers. John was a member of..
Star Refrigeration - a cool place to work
Created March 11, 2010, 10:13 am
The Sunday Times has, for the second year running, listed our client, Star Refrigeration as one of the top 100 companies to work for in their 2010 survey. The process uses a combination of employee surveys, organisation questionnaires and company visits..
Cost of employee share purchase plans reduced
Created March 9, 2010, 4:14 pm
From 6th April 2010, the official rate on employee beneficial loans will reduce from 4.75% to 4%. This change will provide taxable benefits on loans exceeding £5,000. The 4% rate of interest will also be used when calculating the tax on..
Further qualification for RM2 share scheme manager
Created March 5, 2010, 12:41 pm
We are delighted to announce that one of our Employee Share Scheme Managers, James Lindon, has successfully completed the Institute of Chartered Secretaries and Administrators (ICSA) International Qualifying Scheme. This qualification covers areas such as corporate governance, corporate secretaryship, corporate..
AIM share scheme disclosure
Created February 24, 2010, 12:29 pm
Companies quoted on AIM are now required to disclose details of the remuneration of each of their directors in their accounts, including equity based rewards such as share options and LTIPs.New AIM rules were recently published by the London Stock..
Unapproved options - time to exercise?
Created February 23, 2010, 4:05 pm
From 6th April 2010, new rates of income tax will apply to the exercise of unapproved share options by UK holders. Currently the high-end rate of income tax is at 40%. This will increase to 50% from April for those individuals..
Paying income tax on a sale of shares
Created February 15, 2010, 9:14 am
The UK Supreme Court has released a judgment upholding an income tax charge on the sale of shares. This underlines the need for private companies to obtain competent professional advice in relation to all share transfers. Share rights were attached to..
Employee Ownership: good for SMEs
Created February 12, 2010, 4:01 pm
A report entitled Model Growth: Do employee-owned businesses deliver sustainable performance was published in January 2010 by amongst others, Professor Joseph Lampel, Professor in Strategic Management at Cass Business School, City University, London. The report is based on a survey of..
IASB told to improve its governance
Created February 10, 2010, 5:15 pm
The International Accounting Standards Board (IASB) has been told to improve its governance. This statement, made by leading financial regulators comes just ahead of the plans in place for the IASB rules to form a general set of international standards..
Equity based staff rewards for tough times
Created January 27, 2010, 9:54 am
Employee share schemes are already commonplace in UK quoted companies. These often take the form of share options or awards of shares which are released to employees over time on the achievement of performance targets. Now, however, smaller companies are..
Share options expensing champion to stand down
Created January 7, 2010, 11:59 am
Sir David Tweedie will stand down as chairman of the International Accounting Standards Board on 30 June, 2011. Tweedie has been a major force in the development of international accounting standards, including those applicable to employee share incentives such as..
Global Technology Group launches sharesave in 11 countries
Created December 14, 2009, 11:49 am
In September, the sharesave scheme was approved for over 3,300 staff with a further 9,929 eligible under the unapproved plan across 10 other countries, including China, Spain, the US, Singapore and Australia. The Company state that retention was a key driver..
Banco Santander sharesave scheme now covers 6,500 employees
Created December 7, 2009, 12:15 pm
Previously, only Abbey staff were able to benefit from the scheme, however, it is now also available to the staff of Alliance & Leicester, which became part of the Santander group in 2008. Spokesman for Abbey said welcoming new staff into..
Boost the Economy with an Employee Share Scheme
Created November 30, 2009, 4:52 pm
A leading accountancy firm has urged companies to improve employee share schemes in order to boost economic recovery. The advice comes after a research project found that just 6% of the largest companies in the UK were responsible for creating up..
Absoft Oil and Gas Team Success
Created November 23, 2009, 11:41 am
We are pleased to see that specialist software business Absoft, an RM2 client, has strengthened its foothold in the oil and gas sector after its dedicated new energy team secured a significant rise in revenue and broke into key markets. Absoft..
Wages still frozen - time for share incentives?
Created November 19, 2009, 4:51 pm
More than half of all UK companies are planning to keep wages on ice for a second successive year, according to a survey carried out by RM2 client Harvey Nash this week, in conjunction with the CBI.This is one way..
Do Employee Share Schemes really incentivise employees?
Created November 16, 2009, 3:26 pm
It seems the answer is yes, employee share schemes really do incentivise employees and encourage loyalty. A recent share plan survey carried out by Computershare revealed that employees in plans stay with the Company longer. It also revealed they take a..
Employee share schemes: positioning for growth
Created October 22, 2009, 3:21 pm
In a new article, Liz Hunter, RM2's senior associate for Scotland, explains why employers need to re-examine the balance between cash and equity in their staff remuneration strategy.Drawing on the example of the ill-fated Appollo 13 mission, Liz reflects on..
RM2 website re-launch
Created October 14, 2009, 2:50 pm
The RM2 Partnership has launched its brand new interactive website. The new layout is more user friendly making it easier to find key information on employee share ownership and share option schemes. The navigation has also been improved with easier..
EMIs exempt from Prospectus Directive?
Created October 13, 2009, 10:35 am
Currently, all non EU-based foreign companies are required to issue a lengthy prospectus every time they want to make equity awards to employees in European subsidiaries, unless the shares are quoted on EU stock markets.The European Commission is proposing to..
EU endorses EMIs
Created September 18, 2009, 4:16 pm
Enterprise Management Incentives (EMI) have been given long term approval by the European Commission. These popular and flexible plans allow small businesses to recruit and retain highly skilled employees more easily.EMIs provide a tax break on share options offered by..
EMIs on the increase
Created September 10, 2009, 5:17 pm
The popularity of the Enterprise Management Incentive scheme has soared over the last year with 9,110 companies now using this scheme to benefit their employees according to the Office of National Statistics.In a single year, 2,830 companies opted to introduce..
Salary sacrificed for share options
Created September 4, 2009, 10:03 am
Shareholders of Europe's largest consumer electronics retailer, DSG International, have voted in favour of a salary sacrifice arrangement for their directors. This will see its chief executive, John Browett, sacrifice 25% of his salary in return for share options for..
More UK companies to qualify for EMI share options
Created September 3, 2009, 12:55 pm
The Government has recently announced that the 2010 Finance Bill will widen the Enterprise Management Incentive (EMI) eligibility criteria, so that companies based in the UK which carry out considerable overseas activity can use EMIs to recruit key UK based..
Australian Government backs down on share schemes
Created July 27, 2009, 4:08 pm
The Australian government caused consternation in May with new proposals for taxing employee share schemes. However it has recently back-tracked considerably.The main outcry was in relation to a proposed tax on the grant of options or other share rights at..
FDs of larger companies face personal tax fines
Created June 17, 2009, 12:15 pm
From July this year senior financial officers of larger companies must ensure that their tax accounting systems are accurate - or potentially face a personal fine.Employee share option and share ownership schemes are key areas where companies can (and do)..
Obama's executive compensation plans
Created June 16, 2009, 3:49 pm
The US Treasury has released "five principles of compensation" to align compensation practices with sound risk management and long-term growth in US listed companies. In the main the principles are intended to be advisory not binding. The principles are:1. Proper..
HSBC SAYE share option success
Created May 21, 2009, 9:37 am
According to a report in Employee Benefits Magazine, HSBC's latest sharesave plan has become the most popular share scheme in the bank's history, attracting 34,000 applications from UK staff.The scheme, which closed to applications on 24 April, offered options at..
Budget highlights share scheme tax benefits
Created April 29, 2009, 7:30 am
The tax changes announced in the 2009 Budget are causing many companies to look again at the tax advantages of employee share schemes. Effective from April 2010, income tax will rise to a top rate of income tax to 50 per..
Star Refrigeration
Created April 14, 2009, 4:13 pm
Star Refrigeration Limited, an RM2 client, has recently been chosen for inclusion in the 2009 Sunday Times list of "100 Best Companies to work for".The Glasgow-based firm is the UK's largest independent industrial refrigeration engineering company. Star pioneers groundbreaking refrigeration..
RM2 awarded latest ISO 9001 accreditation
Created March 23, 2009, 11:23 am
The directors and staff of RM2 are delighted to report that, following a full quality audit, we have retained our ISO 9001 quality accreditation for the design, implementation and administration of employee share schemes. We achieved a pass in each..
Exam success for RM2 staff
Created February 23, 2009, 2:49 pm
We are delighted to report that RM2 staffers Becky Mitchell and James Lindon have both earned further exam success as part of the ICSA Professional Programme.Becky passed the Corporate Law module, and has now completed part one of the Professional..
RM2 alerts Times to SAYE rate changes
Created February 4, 2009, 3:32 pm
RM2 today alerted Times Journalists Mark Atherton and Laura Whateley to forthcoming changes to SAYE bonus rates - before they are announced by HM Treasury. Normally, SAYE bonus rates are changed once, or at most twice a year. But recent turmoil..
RM2 retain Investors in People Standard
Created January 15, 2009, 1:10 pm
The directors and staff of RM2 are delighted to announce our "continued recognition" as an Investor in People, following a recent review conducted by the Quality South East and Investors in People UK team.The Investors in People National Standard is..
Adapting to the times
Created January 9, 2009, 3:32 pm
As economic conditions change, companies are adapting their equity incentives. Many of our clients, especially private companies, are looking to amend the performance conditions attaching to options, including EMI options. We can re-assure such companies that HM Revenue & Customs..
Pre-Budget Report fillip for employee share schemes
Created November 25, 2008, 10:12 am
Income tax and NIC increases announced on 24th November will heighten interest in tax efficient employee share schemes.In his 2008 Pre-Budget Report the Chancellor announced an increase in income tax to 45 per cent. for those earning in excess of..
New edition of the Guide
Created October 18, 2008, 4:42 pm
The 2008/09 edition of "Employee Share Schemes - A Guide for Directors" has arrived.The Guide, compiled by share scheme experts at RM2, provides directors and their advisers with an authoritative account of all aspects of employee share schemes and how..
Reasons to be cheerful
Created October 17, 2008, 9:00 am
Everyone seems to be talking about recession. But it's not all gloom. We have some practical suggestions for ways in which RM2 can help your business.1. Use share schemes to conserve cash. Even in tough times, it's important to hang..
Boost to share ownership in Germany
Created August 29, 2008, 2:43 pm
In response to a widening gap between rising corporate profits and employee wages, the German government is to promote employee share schemes, giving workers a larger proportion of their company's profits.According to Peer Steinbrück, finance minister, the government is talking..
SAYE rate boost
Created August 11, 2008, 9:55 am
From 1st September 2008, the bonus rates for SAYE share option schemes are increasing. For the 3 year plan, the bonus rate (expressed in monthly contributions) rises from 1.6 months (an effective interest rate of 2.84%) to 2.4 months (4.23%)...
Non-domiciliaries: Government wriggles
Created June 10, 2008, 4:39 pm
The 2008 Finance Bill introduced a new regime whereby persons not domiciled in this country could choose between declaring their entire worldwide income for UK tax purposes, or paying a special £30,000 charge plus tax on any amounts remitted to..
Budget boost for EMIs
Created March 13, 2008, 2:33 pm
Alastair Darling announced that, from 6th April 2008, the upper limit on the value of shares that can be offered under an EMI scheme will increase from £100,000 to £120,000. This will allow more high level executives to take their..
Research backs EMI effectiveness
Created February 29, 2008, 4:36 pm
Nearly 80 per cent. of employers offering employee share options under the Enterprise Management Incentive (EMI) say that the scheme helped them retain key and/or skilled employees and improve staff motivation, according to research commissioned by HM Revenue & Customs..
New CGT rules and share schemes
Created January 25, 2008, 12:18 pm
Alastair Darling's new CGT rules offer some crumbs to small business owners but have little effect on employee share schemes.The new rules take the form of a relief of 4/9ths of gains on the sale of trading companies up to..
£12m SAYE bonanza for HBOS staff
Created January 11, 2008, 11:55 am
HBOS has announced a payout of approximately £12m to its workforce of almost 14,000 staff following the maturity this week of its SAYE ("sharesave") share option scheme.The average participant benefited to the tune of about £1,000. This is well within..
