David Craddock’s specialist consultancy skills cover all aspects of employee share schemes and design, share capital restructuring, tax-efficiency, legal compliance, implementation, administration, communication and the on-going maintenance of the schemes. Significant success has been achieved with client companies – quoted and unquoted – in developing innovative strategies based on bespoke tax-efficient solutions in employee share ownership programmes and the design of schemes to achieve an optimum response from participants at all levels in terms of performance and motivation. David is renowned for his innovative approach to finding solutions and assisting the client in effective implementation.
David Craddock Consultancy Services works with the client to develop the most appropriate scheme structure or, indeed, the most appropriate configuration of schemes if that is considered appropriate. It is sometimes the case that the scheme(s) work best when linked to an employee share trust. This is particularly relevant when succession planning or management buy-out arrangements are envisaged and it enables the sale of shares by existing shareholders under the capital gains tax regime.
What is an Employee Share Scheme?
Employee share schemes offer employees the opportunity to buy shares in the business they work for. Owning part of a business offers a great incentive for employees to contribute to the success of the business and remain loyal to the business. There are ‘approved’ employee share schemes and ‘unapproved’ employee share schemes, this references HRMC’s view of an employee share scheme and whether or not it comes with tax advantages as a result.
Employee shares schemes differ greatly between those suitable for small and large companies. Small businesses looking to set up an employee share scheme are most likely considering an enterprise management incentive scheme because EMI schemes enjoy tax advantages and as a business owner you can choose who is eligible to join the scheme and when.
Larger businesses might choose a SAYE or SIP because these must be open to all employees, which type of employee share scheme is most advantageous for a business and its employees will depend on a number of variables.