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Newsletter: EMI schemes explained

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Newsletter

We know that you are busy changing the world for the better. That is why our newsletters focus only on the essentials, dishing up bite-sized legal and HR insights relevant to founders, entrepreneurs and start-ups.

One of our regular features is our Two-Minute Masterclass – everything you need to know about a legal or HR issue explained in two minutes or less! In this email: EMI Schemes.

Two-Minute Masterclass: EMI Schemes

EMI explained – a tax-efficient equity award to employees.

Advantages – no income tax on the award or exercise of options, only 10% capital gains on the sale of shares. Increases employee motivation and saves on salary burn if taken in lieu of salary.

Disadvantages – only employees can get the tax benefits (advisors and consultants are not eligible). Some costs to implement (get in touch, we’ve got deals on) and (minimal) ongoing reporting. Mistakes are often made in awarding too much / too early or in missing crucial HMRC filing deadlines.

Overall – if you are looking to align your team towards the medium/long term goals of the business these are a great way of doing so, once structured correctly.

Next time...

Next time in Two-Minute Masterclass: Important changes to employment contract requirements

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And that's it!

Do not miss our next newsletter; the update on employment contracts affects all UK-based companies hiring staff.

If you have any questions or want to chat through any legal or HR issues you are facing, you can get in touch with us any time – just give us a call.

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