Its a win-win situation for businesses and employees.
Significant tax savings compared to bonus & salary.
We have helped many businesses in setting up EMI (Enterprise Management Incentives) schemes. We not only set it up for you, we can visit your office to explain it to your staff too.
A quick EMI eligibility check:
Net assets of the company should be £30 or less.
A company can grant option of £250k in a 3 year period
Can only be issued to eligible employees
EMI options VS Bonus/Wages
Employee will have long term interest and will feel motivated, valued and rewarded.
Employee only pay 10% capital gain tax on the gain.
Employee will have no long term interest. Can get demotivated if miss out on bonus targets.
Employee will end up paying out around 40-45% in PAYE taxes. Employer will also bear 13.8% NI cost
How long does the process take?
Week 1 - Week 2
Week 3 - Week 8
Week 9 - Week 12
There are mainly three types of contracts for vesting options. Performance based, time bound and upon sale of the company. We discuss your requirements and prepare the contract accordingly. It generally takes up to two weeks to finalise.
Once we have approved agreement in place, we do company's valuation using most relevant method and do complete correspondence with HMRC to get valuation approval. Approval remains valid for 90 days.
SIGN & NOTIFY
After receiving valuation confirmation from HMRC, we get the contracts signed by employees and notify HMRC about the company's EMI activity. Once that is done, then you'll need to submit ERS return every year. And that's all done for you.
I have been working with CBM Accounting for the past few years and have been very happy with the service provided.
Thursday, January 3, 2019
Amazing service and support, friendly and professional, prompt answers to any kind of enquires. Highly recommended
Friday, September 7, 2018
Kashif and his team have been looking after our financials for many years. Not only are they excellent day to day administrator,s but they also offers excellent strategic advice. I highly recommend CBM Accounting.
Thursday, August 02, 2018
CBM Accounting is very professional. Our management account is in much better shape than before. The level of service is second to none especially Arif, he's taken real care of our accounts and management reporting.
Monday, January 28, 2019
I know the accounting side is being taken care of and I have even had the pleasure of some advice regarding personal matters. I feel CBM is an accounting firm my company will spend a long time with.
Wednesday, January 3, 2018
CBM Accounting have provided The Ebury Restaurant & Wine Bar LTD with a first-class accounting service for over six years. They have proven to be highly efficient, reliable and professional in their work.