Category Archives: Employee Incentives

The Chancellor has announced a number of changes in respect of the right to claim Entrepreneurs’ Relief (ER) in yesterday’s Budget. For disposals on or after 6 April 2019, the minimum period throughout which the qualifying conditions for ER must be met will be extended from 12 months to 24 months. Furthermore, in addition to … Continue reading Budget 2018: Entrepreneurs’ Relief – holding period for disposal of “relevant EMI shares”

There was good news today for those that feared that the Government might use the Budget to announce proposals to reverse all the tax advantages of personal service companies. The Government is merely to consult on the tax treatment of workers using service companies to provide services to the private sector. The tax savings which come … Continue reading Workers using service companies and in the gig economy – further consultations

In today’s Budget, the main news for employee incentives is that the Government has confirmed that it is proposing to continue with the Enterprise Management Incentive (EMI) scheme. EMI share options can be granted by SMEs over up to £250,000 of shares per employee, with exercise gains subject to capital gains tax at 10% under … Continue reading Employee Incentives – Budget developments

HMRC has recently publicly confirmed that if an employee has given an indemnity for PAYE tax on shares, this stops a further tax charge arising on any underpaid PAYE. Underpaid PAYE on shares can arise in a number of cases. The value of shares may have been incorrected estimated or a share plan or EMI … Continue reading Unpaid PAYE on employee shares – HMRC confirm an additional tax charge should not arise if there was an indemnity in place

In the Autumn Statement, the Government confirmed that it would remove the tax advantages of salary sacrifice for arrangements put in place after April 2017.  Certain benefits provided through salary sacrifice (accommodation, cars and school fees) will  be protected until 2021 and other benefits can still benefit from tax savings indefinitely (pensions, cycles, childcare, certain … Continue reading Salary sacrifice draft legislation now published

Background Following a consultation process in 2015, the Government announced at Budget 2016 that it would make changes to the taxation of termination payments. The Office of Tax Simplification (OTS) had previously highlighted the complexity of the existing rules in its report in 2014 and recommended that they be simplified. On 10 August 2016, HMRC … Continue reading The new regime for termination payments

In a surprise move in today’s Budget, the Chancellor has slashed the rate of capital gains tax from 28% to 20% (or, for basic rate taxpayers, from 18% to 10%).  These changes come into effect from 6 April 2016.  This will be great news for any employee holding shares in their employer company and, in … Continue reading Employee Share Incentives: a sprinkling of sugar but a cap on ESS

Although the 2015 Budget contained no new announcements that will materially impact Employee Incentives arrangements, it is worth highlighting some of the legislative changes previously announced that will soon be enacted, or which are now becoming particularly relevant. If you have any questions in relation to anything below, or Employee Incentives generally, please contact our Employee … Continue reading Employee Incentives: incoming changes

All of the changes to employee share incentive arrangements that were proposed back on 27 March (when the Finance Bill was published) have now formally made it onto the statute books: Royal Assent has been received and we now have the Finance Act 2014.  Just as well really, given that the vast majority of the changes have … Continue reading Employee Share Incentives update: Royal Assent to the Finance Bill

In order to qualify for the beneficial EMI tax regime, an EMI option must be notified to HM Revenue & Customs within 92 days.  To date, this has been done by post using the Form EMI1.  This is set to change from 6 April 2014 and employers who grant EMI options must use a new online procedure.  In … Continue reading Changes affecting EMI options – are you ready?