EMI Scheme — The sure way to retain your best talent

28 06 2017

For most tech start-ups in the UK, the ability to recruit and retain the best talent holds the key to their success. However, it is an enormous task for the start-up since they have to compete for the best talents with the established companies that have access to diverse resources. The resulting competition in the marketplace is forcing more and more companies to turn to Enterprise Management Incentive (EMI) Schemes to increase retention of outstanding staff members.

How EMI Schemes work

Through the EMI scheme, the company offers selected employees the opportunity to invest in the company by buying shares. EMI is an HMRC approved scheme that allows companies to grant some employees the right to acquire shares at an agreed price at a given time in the future. One of the instances when the employees can exercise the right is at the selling point of the business. In such a case, the employee buys the company shares and sells them on the very day and pockets the difference between the agreed price and the final sale price in a tax-efficient manner. So why is it tax efficient?

If you would like to read the full article on EMI please follow the blog link:

https://theaccountancycloud.co.uk/news/emi-scheme--the-sure-way-to-retain-your-best-talent

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The Accountancy Cloud

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Accounting solutions. For tech startups. Offices in London, & New York.

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