Can I set up a share plan or an EOT myself?

There is nothing legally stopping you, but we would strongly advise against it. Share plans and EOTs carry complex commercial, legal, tax, valuation and accounting implications, and there are compliance and administrative steps that must be completed correctly for the arrangement to be effective.

Both HMRC and any future investor or acquirer will take a keen interest in how a plan was implemented and operated — share plan compliance is often the first thing a buyer’s advisors examine during due diligence. Specialist input is also valuable when drafting plan documents, agreeing valuations and preparing employee communications.