EMI schemes for tech companies bring valuable benefits when hiring employees
Tech company founders know that the key talented people they need to scale up the business will want equity as part of their reward as they are likely sacrificing a lucrative and comfortable career for a risky but ambitious fledgling business.
But how does one give them a slice of the future rewards without creating cost and complexity in the present?
The Enterprise Management Initiative (EMI) is an HMRC approved share scheme available to most trading companies that allows key employees to be granted share options in a very tax efficient way.
It is the most commonly used such vehicle in the UK, especially in London’s vibrant technology community, and we should know as creating such schemes is something we at Wilson Wright do every day!
EMI schemes have many benefits, which is why we often (but not always) recommend them to our fast growth tech clients.
EMI scheme benefits include:
- Schemes are bespoke to fit the needs of your business and team.
- It locks in the current valuation so executives in the scheme are not penalised with higher tax payments as the business grows in value.
- A business valuation can be agreed in advance with HMRC giving both you and the employee certainty.
If you are a tech business owner, do come along to our next discussion dinner, where we will be tackling a major dilemma tech CEOs are facing:
- Overcoming the dilemmas of attracting the top talent that will accelerate your tech business’s growth: Wednesday 24 May 2017 at 6.30pm
- Huge potential, low income: maximising the valuation of your tech business: Thursday 7 September 2017 at 6pm
- November 2017 – date and subject TBC shortly!
Our dinners are exclusively for tech company directors and take place around Holborn, central London, click here for more details and to register your interest in attending these and future ones.
Wilson Wright LLP
Latest posts by Wilson Wright LLP (see all)
- Making it Count - October 26, 2018
- Wilson Wright is ‘Making it Count’ as it celebrates its 125th anniversary - October 10, 2018
- Wilson Wright included in the Accountancy Age 50+50 list - September 20, 2018