½Û×ÓÊÓƵ

When compared with other tax-advantaged employee share schemes, Enterprise Management Incentive (EMI) has historically been relatively simpler both to set up and administer. This follows the principle that it is meant to be an inclusive scheme for smaller companies and therefore does not attempt to discourage those that might be tempted to try it out. FA 2014 removed the formal approval process from all of the tax-advantaged schemes, instead moving toward a system of self-certification. This means that the benefits of simple set-up requirements which have long been enjoyed by EMI schemes are now enjoyed by the other schemes (SIPs, CSOPs and SAYE).

The several different stages of the process that do not necessarily need to be operated in a strict linear order are the following:

1. •

   establishing that the company / group qualifies

2. •

   devising and structuring the plan

3. •

   agreeing a share valuation

4. •

   drawing up option agreements or scheme rules and agreements

5. •

   presenting the scheme to staff

6. •

   notifying HMRC electronically

7. •

   monitoring the scheme and completing annual returns electronically