Setting up and administering EMI schemes

Produced by Tolley in association with

Employment Tax

Guidance

When compared with other tax-advantaged employee share schemes, Enterprise Management Incentive (EMI) has historically been relatively simpler both to set up and administer. This follows the principle that it is meant to be an inclusive scheme for smaller companies and therefore does not attempt to discourage those that might be tempted to try it out. FA 2014 removed the formal approval process from all of the tax-advantaged schemes, instead moving toward a system of self-certification. This means that the benefits of simple set-up requirements which have long been enjoyed by EMI schemes are now enjoyed by the other schemes (SIPs, CSOPs and SAYE).

The several different stages of the process that do not necessarily need to be operated in a strict linear order are the following:

•
establishing that the company / group qualifies
•
devising and structuring the plan
•
agreeing a share valuation
•
drawing up option agreements or scheme rules and agreements
•
presenting the scheme to staff
•
notifying HMRC electronically
•
monitoring the scheme and completing annual returns electronically

Establishing

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Oliver John

Director at Azets , Employment Tax

Oliver John was previously at Mazars for just more than five years where he provided tax and share valuation advice to a range of businesses with regards to share transactions. In his role as director at Azets, Oliver will continue to share tax advice with clients over the life of a business, from companies looking to raise capital to shareholders looking to exit.

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