EMI Scheme

Experts in EMI scheme implementation.

The EMI scheme supports employee retention and increased productivity in your company by allowing your employees to obtain shares without incurring income tax or national insurance when EMI options are granted.

What’s more, when your employees eventually sell shares obtained via an EMI share option scheme, they are liable for capital gains tax (CGT) at the business asset disposal relief rate of only 10%.

Max Accountants has considerable experience in assisting with EMI schemes and, working with you, we will:

  • Calculate the value of your company’s shares for EMI purposes
  • Submit the valuation report to HMRC for approval and agreement
  • Report the EMI option grant to HMRC
  • Prepare and file the annual EMI option scheme returns
  • At the point of exercise, file the SH01 with Companies House and update the statutory registers
  • Assist with additional paperwork, such as share certificates and s431 elections

What is the Enterprise Management Incentive Scheme

As a share option plan, the EMI offers selected employees the opportunity to purchase shares at a specified time and price agreed at the time the options are granted.

Individual performance and retention conditions can be built in, helping to ensure rewards are only distributed when key corporate objectives have been met.

Any full-time employee of a qualifying company may be granted tax-advantaged share options over shares with a market value of up to £250,000 at the time of the grant, subject to an overall company limit of £3 million. The shares must be in an independent trading company that has gross assets of no more than £30 million and with fewer than 250 employees.

To obtain a more comprehensive understanding of the qualifying criteria and how the scheme can have a positive impact on your business, book a free consultation with a member of our team – Call 01572 770727 or contact us

Benefits of an Enterprise Management Incentive

The “EMI” is one of the most flexible and tax advantaged share schemes currently available in the UK, offering a potential tax rate of as low as 10% on any gains.

Benefits to companies and employees are many-fold – an EMI can -

  • Motivate participants to work beyond short-term goals
  • Reward participants on a tax-advantaged basis
  • Protect current shareholders from immediate dilution and loss of control
  • Promote long-term retention of key employees
  • Encourage growth by linking awards to performance conditions
  • Provide a framework to include new participants, if required
  • Attract top candidates to companies
  • Minimise risk for participants

Who is eligible to join an EMI Scheme?

To join an EMI scheme, the employees must:

  • Work for you for at least 25 hours a week or 75% of their working time (therefore, a part-time employee can qualify so long as they don’t spend more than 25% of their time working elsewhere).
  • Not hold any more than 30% of the company

Require more information?

For more information, please do not hesitate to contact us.