Unlock Growth Potential with Enterprise Management Incentives (EMIs)

Discover how EMIs can revolutionise your approach to talent retention and business growth. Explore the benefits of tax-advantaged share options for your company and learn how to leverage EMIs to attract top talent and align employee interests with your strategic objectives. 

Whether you’re a startup aiming to incentivise key hires or an established SME seeking tax-efficient ways to reward loyalty, EMIs offer a powerful solution. Dive into our resources to understand eligibility criteria, implementation steps, and the transformative impact EMIs can have on your organisation. 

Contact David Craddock Consultancy Services today to schedule a consultation.

What are Enterprise Management Incentives (EMIs)?

Enterprise Management Incentives (EMIs) are a strategic initiative by the UK government designed to empower small and medium-sized enterprises (SMEs) to attract and retain key talent through tax-advantaged share options. These options allow eligible employees to purchase shares in their company at a predetermined price, aligning their interests with the company’s long-term success.

Learn More About Understanding Enterprise Management Incentives (EMI) Scheme

Why Consider EMIs for Your Business?

  1. Attracting Top Talent: EMIs offer a competitive edge in recruiting skilled professionals who are looking for more than just a salary—they want a stake in the company’s growth and success.
  2. Retaining Key Employees: By granting EMIs, companies can incentivise key employees to stay committed and motivated, fostering loyalty and reducing turnover.
  3. Tax Benefits: Both employers and employees benefit from significant tax advantages under the EMI scheme, making it a cost-effective way to reward and motivate staff.

Eligibility and Implementation

To qualify for EMIs, companies must meet specific criteria set by HM Revenue & Customs (HMRC), including:

  • Size: Have gross assets of £30 million or less and fewer than 250 full time employees.
  • Independence: Is not majority-owned by another entity, only have ‘qualifying subsidiaries’.
  • Trade Activity: Is not in any of the ‘excluded activities’ including banking, insurance, property, etc.

Eligible Employees:

  • Individual: Must be an employee ‘of the company or ‘qualifying subsidiaries’ when the option is granted.
  • Working Time: Must work at lease 25 hours each week or 75% of their working time.
  • Must Not Have: A material interest of more the 30% of the ordinary share capital.

Implementing an EMI scheme involves:

  • Design an EMI Scheme to suit your needs: Drafting clear rules and agreements, number of shares being granted, types of options, leaver conditions, vesting periods, and exercise conditions. 
  • HMRC approved Valuation: Share scheme valuation is a critical part of designing an employee share scheme. 
  • Compliance: Adhering to reporting requirements and ensuring ongoing compliance with EMI regulations.

Contact David Craddock Consultancy Services today to schedule a consultation.

How We Can Help?

Our experienced team specialises in guiding SMEs through the complexities of setting up and managing EMI schemes. See  https://www.davidcraddock.com/case-studies/ for examples of successful EMI Schemes that David has implemented.  We offer:

  • Consultation: Tailored advice on structuring an EMI scheme that aligns with your business objectives.
  • Implementation: Handling all aspects of scheme implementation, from valuation to HMRC reporting.  David Craddock is one of those rare practitioners who is both an expert employee share schemes consultant and an expert valuation consultant.
  • Compliance: Ensuring ongoing compliance to maximise tax benefits and mitigate risks.

Still, Have Questions? Learn More on Understanding Enterprise Management Incentives (EMIs)

Ready to Empower Your Team and Drive Growth?

Explore the potential of Enterprise Management Incentives with us. Contact David Craddock Consultancy Services today to schedule a consultation and discover how we can help you harness the power of EMIs to propel your business forward.

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Testimonial:
“When it comes to employee share schemes David Craddock Consultancy Services can make it happen. I cannot recommend David and his team highly enough, having first been introduced to David some 20 years ago. From the first consultation, David took time to understand the company, our requirements and what we wanted to achieve. His knowledge and advice on the subject of employee share schemes is invaluable and his status as an expert share valuer and long-standing experience in share capital reconstructions and corporate governance adds to the strength of the service that David offers.
The success of the all-employee scheme in incentivising and motivating the staff has contributed to the successful growth of the company and the retention of key members of staff. Furthermore, David and his team offer ongoing support throughout the lifecycle of the scheme in managing the administration once the scheme is implemented. The service extends to compliance with all statutory and regulatory requirements, including the reporting requirements with HMRC. With David and his team, we always know that the scheme is in capable hands. Latterly, David has worked with me on a key scheme for our Chief Executive which has required enormous attention to detail and the introduction of innovative features. This scheme has also been well-received and is exactly right for the circumstances of the case.”
Paul Gillott
Symatrix Limited