Too complicated Keep it simple. As a business owner, you want the financial interests of your employees as closely aligned with yours as possible. Give an employee shares (or an option) so that they do well if the business does well. That’s often complicated enough. A...
Employee ownership offers many benefits for businesses and employees, including helping to attract the best talent to a company, improving employee engagement and boosting staff retention. However, it’s inevitable that some employees will leave at some point, whether to move on with their career, due to retirement or...
While the government may have announced an increase in National Insurance contributions (NICs) of 1.25% for both employees and employers to help fund the NHS and social care reforms (with effect from 1 April 2022), RM2 note that the attractiveness of tax-advantaged employee share plans...
One of RM2’s mantras is “Keep it Simple” so we’re always keeping a weather eye on the work of the Office of Tax Simplification (OTS). Their most recent reports have focused on capital gains tax simplification, including a section in their second report suggesting simplifications for...
There are many good reasons why Employee Ownership, in its various forms, is an increasingly popular business model in the UK. When employees share in the ownership of a business, their interests are aligned with those of shareholders. This means that employees are more likely...
When we begin to speak with clients about employee share plans, one of the questions we are often asked is, “what size should the award be”? This is, of course, an extremely important question, but unfortunately not one which is necessarily very simple to answer. There are...
So, you think that you might want an Enterprise Management Incentive share option scheme (EMI)? Well, there are a couple of other commercial issues that you may wish to consider even at this very early stage in the EMI implementation process. What size of option pool...
Fast growing entrepreneurial businesses that implement Enterprise Management Incentive share options are very frequently the same businesses looking for external funding from venture capitalists, or seeking investment from individuals under the tax-advantaged Enterprise Investment Scheme. But how do these work together? Here are five things you...
Let’s 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 offer equity-related rewards to employees. By awarding employees with a share of the company,...
Share plans annual return season is upon us. RM2 is in the midst of preparing approximately 150 share plan returns for our clients for EMI, SIP, CSOP, SAYE and “Other” (the category that covers all non tax advantaged share plan arrangements such as Growth Shares...
Were The Smiths actually singing about share schemes consultations? Okay, probably not. But RM2 has been talking to people about the government’s consultation on EMI, and we’ve also been reading a recent report produced by the Social Market Foundation on employee share schemes in the post-Covid...
When it comes to employee share plans, the administration that goes into the schemes is very important, but it can also be quite difficult for companies to comprehend and handle. It may be easier to outsource the administration. Below are the reasons why it may...
While there was little in the Budget directly affecting employee share plans, the Treasury has launched a consultation (promised in fact in Budget 2020) relating to Enterprise Management Incentives (EMI). It is a “call for evidence” and the government’s stated aim is to obtain more...
Fast growing entrepreneurial businesses that implement Enterprise Management Incentive (EMI) share options are very frequently the same businesses looking for external funding from venture capitalists, or seeking investment from individuals under the tax-advantaged Enterprise Investment Scheme (EIS). But how do these work together? Here are five...
Suddenly it’s December … Where did this exceptional year go?If you had big plans to put in place a share plan for employees this year, but you’ve not quite got around to it you could start working on a 2021 New Year’s Resolution now &...
