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Markel Tax

Employment taxes and share scheme

Companies can pay their employees with shares and the government is actively encouraging it. Both tax advantaged statutory share-schemes and non-statutory share-schemes can be highly advantageous to employees. However, the rules are complex as legislators have tried to encourage share ownership while discouraging tax avoidance. 

Our team can assist in navigating these complexities and has considerable experience in advising on and implementing a wide variety of employee share schemes, including:

  • Enterprise Management Incentives (EMI)
  • Share Incentive Plans (SIP)
  • Company Share Option Plans (CSOP)
  • Employee Ownership Trusts (EOT)
  • Growth Shares

Spot an employment tax and share scheme opportunity

There are five key reasons why companies should consider share schemes:

  • Attracting the best talent 
  • Employee retention and motivation
  • Maximising tax efficiency
  • Driving business performance 
  • Succession planning within the organisation

The process

Step 1 - A complimentary initial overview to discuss objectives
Step 2 - We design the share scheme and provide advice on taxation
Step 3 - We prepare plan rules and option agreements, and agree terms of performance conditions to be attached to the awards
Step 4 - We prepare all share scheme documentation, including legals, minimising the ‘back and forth’ between accountants and solicitors.
Step 5 - Valuation and liaison with HMRC 
Step 6 - Post implementation and communication with participants to explain the scheme
Step 7 - We provide assistance with the whole share scheme life-cycle


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