One of the tests for a company to qualify for EMI share schemes is that it is not “a 51% subsidiary” of another company – i.e. no more than 50% of the company’s share capital is owned directly or indirectly by another company. This test...
If any of your clients have UK taxpayer employees receiving share/stock options, restricted share units or other employee share benefits, the plan or agreement must be registered with HM Revenue & Customs (HMRC) online preferably before 6th April 2015, and then an online (not paper)...
Ensuring the implementation of any employee share scheme is an essential component in its success. However, taking care to ensure the administration is permitted the same level of detail is also of paramount importance. Errors in scheme administration can expose an organisation to significant financial risk,...
RM2 specialise in employee share schemes. That’s it. So if an employee share scheme is right for your client, we can help design and implement a scheme that’s right for them, without posing any competitive threat to you. If there are parts of the work...
The Enterprise Investment Scheme (EIS) was introduced to encourage investment in small-medium sized private companies. Under the scheme, certain tax reliefs are available for individuals making investments that carry a higher degree of risk than, say, an investment in a fully listed company. RM2 do not...
We’ve recently written about how and why share plans can be used in specific sectors – so far we’ve considered recruitment companies and professional services firms. IT consultancies are another type of company that frequently show an interest in share schemes. These companies can take many forms...
It’s expensive to set up One reason to set up a share plan is to retain staff. There will be an initial outlay but how does that compare to the costs to your business of losing key staff members – not to mention the costs of...
The online service for the registration and self-certification of employee share schemes, Employment Related Securities (ERS), went live in April 2014. Many of our clients have successfully registered their schemes and appointed RM2 as their ERS agent. Here at RM2 we have been working closely with our...
If your company has made a loss and you want to claim Corporation Tax loss relief, the company must be carrying on a trade “with a view to the making of a profit in the trade or so as to afford any reasonable expectation of...
Some months ago we wrote a number of blogs outlining the basic structure of a Trust, and how Employee Benefit Trusts (EBTs) are typically funded. To recap, an EBT is typically made up of three key players: The Settlor: this is the party who decides they...
This month, John Lewis Partnership celebrated spring by announcing celebrations for its 150th anniversary. Happy birthday to the biggest UK co-owned business! For many people, John Lewis is the poster boy of employee ownership in the UK, with the business owned in trust on behalf of...
With the Budget having just been announced, we felt it was a good time to go back to basics, and explore the fundamental benefits, potential pitfalls, and overall reasoning behind establishing an employee share scheme.What is a Share Scheme?A share scheme is a way to...
Why companies use EBTs You have heard about EBTs. Some have been used for failed tax avoidance schemes but this articles explains how you can use one to help. Privately owned companies that operate employee share schemes often find it useful to put in place an...
HM Revenue & Customs (HMRC) is changing the way that share schemes are administered and reported to them. The changes will affect existing and new share schemes. If you are a company with an existing share scheme, or are considering implementing one, you should be...
