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Employee Incentives

Would you like to reward your staff with an incentive scheme? The EMI scheme is a great way of doing this, but is it the right fit for your business? 


Attract and incentivise the best talent to help your business thrive

As a business, you’re always looking for ways to retain key staff and attract new talent. So how can you do this?

Ensuring you have the right reward structure to incentivise your employees will put you on the right path, and helps to encourage employees to buy-in to the vision - the company’s growth is their growth.

What are you looking to achieve?

When implementing an incentive arrangement, some of the key questions you need to ask yourself:

  • Will employees be more motivated by investment in share based (business success) or cash payment?
  • Where incentives are share based, are you expecting your employees to pay for the shares or not?
  • Do you know what the value of the business is?
  • By how much are you prepared to reduce your shareholding in the company? Will this be on day 1, over a period of time or only on future sale? 

An incentive scheme will only work if the objectives of the employer and employee are aligned.

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Is it the right fit?

Given the array of different schemes available for businesses to choose from, it can be a bit of a minefield finding the right scheme to fit your business objectives. 

There are various schemes available to businesses, which can be either tax advantaged or non-tax advantaged. It’s the tax advantaged schemes specifically recognised in legislation that provide numerous tax benefits for both employers and employees. 


Government approved schemes

Enterprise Management Incentive Schemes (EMIs) are the most tax-advantageous schemes for employees and employers. They are designed as a tool to help small businesses attract and incentivise staff.

Whilst EMI attracts the most tax-advantages, there are  a number of conditions that must be adhered to - both by the employer and employee - to ensure that these tax advantages are not lost.

Where an EMI may not be suitable, there are a number of other Government-approved incentive schemes.  These include:

  • Company Share Option Plans (CSOPs)
  • Share Incentive Plan (SIPs)
  • Save As You Earn Schemes (SAYEs)

As with all incentive schemes there are different eligibility requirements for each type of approved plan.

Class 2 National Insurance voluntary contributions are no more-1

One size doesn't fit all

Where an approved arrangement is not right for your business, all is not lost. We can look at other arrangements such as:

  • Direct share ownership
  • Growth Share planning
  • Structured bonus planning 
  • Unapproved share options

Why work with Inform?

Incentive planning - no matter which route you decide is the right one for your business, it can be complicated. It’s important you use an expert to make sure they are set up correctly.

  • We will work with you to create an arrangement to fit your needs

  • You will get expert advice from tax specialists that have a wealth of experience

  • We will liaise with HMRC on the intricacies of the scheme details, if required

  • We will work with lawyers to ensure that the agreed arrangement is documented correctly

  • If required, we can meet with your team and present the incentive proposals with you


Download your free financial KPI guide

Need help setting and achieving your goals? The KPIs listed in this guide will help provide the insight you need to keep your business growing. We can help you set your targets, track your data and report back through the provision of management accounts - a monthly or quarterly set of statements that put you firmly in control of your finances.

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