B P Collins Solicitors: talk to the experts
Gerrards Cross: +44(0) 1753 889995
Beaconsfield: +44(0) 1494 675363
Related stories
New website launched to help inventors
17 November 2008
Bond movie party is just the ticket
31 October 2008
Business regulation 'still a burden'
9 October 2008
Calls made for more female board members
2 October 2008
HMRC updates enterprise management incentive guidance
31 July 2008
HM Revenue and Customs (HMRC) has updated its guidance for employers using enterprise management incentives (EMIs).
EMIs, tax advantaged share options designed to help higher-risk companies recruit, offer portions with a market value of up to £120,000 to employees provided they and their companies meet certain criteria.
Fresh advice from HMRC includes clarification on the conditions a company must meet to qualify for EMIs.
These include benchmarks on independence, having only qualifying subsidiaries, gross assets, employee numbers and trading activities.
HMRC said: "Remember that if you grant EMI options you may also have to consider other laws and rules. For example, there may be company law and regulatory requirements to comply with."
Other guidance covers what makes employees eligible, such as rules on working time commitments.
A 2003 HMRC survey of firms running EMIs found companies' reasons for adopting them are broadly in line with the original aim to promote the retention and recruitment of key staff in senior or core capacities.
