Over the last few years our firm has been setting up an increasing number of EMI schemes using what I call the ‘hybrid’ design which is kind of a cross between a pure exit-only or time-based plan, and I am increasingly convinced that – overall - it might be the best form of option scheme. The hybrid is typically known as the ‘four year vest, one year cliff’ option.

This blog covers how to structure your EMI options scheme in terms of when the employees can actually buy their shares.

When it comes to employee share schemes you will often hear or read the term ‘option pool’ but what is it and what are the implications for shareholders and staff?

Most people will have heard of share options and have an idea that they can be a great inspiration. They are indeed, and better still put no demand on your cash flow.

To remain qualifying for EMI options that have been granted, an employee must commit at least 25 hours per week of working time to a company, or the company pays the employee for at least 75% of their total weekly working time (including self-employment). We have been waiting for HMRC to confirm whether time on Covid-19 furlough would count towards the required working time, or whether furloughing would disqualify EMI options.

In the budget today, the Chancellor retains entrepreneur's relief but chops the allowance

EMI share options are the best way to incentivise employees by giving them a real stake in a company.

I admit that I am obviously a bit biased as we focus on employee share schemes as the core of our business. But the new platform approach is something I wanted to look at so that I could decide on whether we set up our own platform and whether it would really add value for clients.

We have just published a set of new videos covering all aspects of EMI option schemes

Learn the six key benefits of EMI share options

Understand the basics of share options

October budget doubled the period to 24 months

HM Treasury has just confirmed that the Commission has approved the ‘prolongation’ of EMI

Critical issue with EMI currently in that the scheme requires approval under the EU state aid provisions

What makes an entrepreneur?

Some useful points on the legal stuff for EMI

The Government has enhanced investment limits but HMRC wants more info for advance assurances

With the Brexit nightmare looming, here is some help for getting your business in shape

Questions such as the type of configuration you want for your option scheme, for example who should get share options, how many each, and when they can actually buy the shares.

Check the eligibility rules for the company and the employees

'Growth Shares' can be used in situations where a company is not eligible for an EMI share option scheme

This blog covers how to structure your EMI options scheme in terms of when the employees can actually buy their shares.

An EMI option scheme is by far the most beneficial tax-advantaged share option arrangement for an employee. These are what I believe to be their five key benefits

It's amazing what a share option scheme can do to help motivate key employees