Topical discussions about employee ownership and employee share plans
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...
RM2 does the research for the Employee Ownership Top 50, a list of the largest 50 private employee-owned companies in the UK which has been prepared annually since 2014. RM2 publishes the list in a partnership with the Employee Ownership Association (EOA). Key findings: By tracking the...
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,...
RM2 has currently completed share plan annual returns for all our clients, including those who run the Share Incentive Plan (SIP).. RM2 provides a full administrative and trustee service for private and smaller listed companies that operate this fantastically tax efficient all employee share plane,...
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...
Employee ownership trusts (EOTs) are becoming increasingly popular across many business sectors. Even the traditionally conservative legal sector (I can say this, because I’m a lawyer!) is starting to embrace this business model pioneered by Aardman Animations and Richer Sounds. Crossland Employment Solicitors recently announced...
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...
