Reasons To Be Cheerful
Everyone seems to be talking about recession. However, it's not all doom and gloom! We have some practical suggestions for ways in which RM2 can help your business in this tough economic downturn.
1. Use share schemes to conserve cash. Even in tough times, it's important to hang on to good people. Cash bonuses and pay increases are one way, but employee share options and other share based rewards can provide a more powerful incentive. They can also be highly tax effective and don't require cash.
2. Take advantage of low share values. Because markets are so low, HMRC accepts that the "fair value" of unquoted shares is also low. This means that you can offer equity benefits to employees on much more favourable terms without incurring tax charges. If you already have share options or other equity incentives, consider repricing them (ask us how). This practice is frowned on for quoted companies, but private companies have complete discretion here.
3. Tune up your existing share incentives. Are they efficiently run? If RM2 doesn't manage your employee share scheme already, ask us for a free quote. You may be pleasantly surprised. Are some of your share options or other incentive schemes unapproved (therefore tax inefficent)? RM2 has solutions which can provide tax-efficient share benefits in almost any company, and can also save substantial amounts of NICs for the employees and the company. Call us on 020 8949 5522 for a free consultation!