How To Set Up An Emi Scheme

Footstep-past-Step Guide to creating an EMI Options Scheme

Everything yous need to give out options and set upwardly your EMI Options Scheme

Written by Anthony Rose
Updated over a week ago

The Enterprise Management Incentive (EMI) Scheme is UK's tax efficient way of granting share options to employees. Through EMI, at that place is no tax payable when yous grant an employee a share pick, no tax payable when the employee exercises the share selection at the strike price agreed with HMRC, and when the underlying share is later on sold at a profit the capital gains tax is fix at x% (instead of 20%). SeedLegals' EMI Selection Scheme is fully compliant with United kingdom of great britain and northern ireland'south legislation. Here's an article to aid you decide when the right time is to prepare an EMI Selection Scheme.

Outset things get-go, does your company qualify for an EMI Share Pick Scheme? Here is an interesting article yous might want to read!

So:

Create employment, consultant, advisor agreements for your team members, promising them share options with a vesting schedule and Good & Bad Leaver provisions.
Create an Options Pool with sufficient options for current and upcoming team members.
Update your Articles to support options (nosotros practise this automatically when you do a funding round on SeedLegals).
Learn more about the different types of option schemes - nosotros'll presume you've chosen the EMI Scheme for the purpose of this commodity.
Get to your SeedLegals dashboard, click to create your EMI Options Scheme on SeedLegals
Ascertain your Pick Plan (we'll take you through it footstep by stride)
Complete and agree your company valuation, in conjunction with our bookkeeping partner, it's all included.
Submit VAL231 to HMRC SAV with backing documents.
…wait….
HMRC response arrives, agree with information technology or haggle.
The HMRC agreement holds for 120 days*.
Pass resolutions and grant options to team members, issue them with cute options certificates (the SeedLegals platform helps you take care of this easily).
Yous have 92 days to formally register the scheme from this date and notify HMRC about the grant of Options
Don't forget to file the annual return on 6th July.

Chat to a fellow member of the team about how to set up your options scheme by booking a gratuitous demo!

Hither is another article on the process and timeline for creating your EMI Option Scheme on SeedLegals.

*Please notation that due to Coronavirus, whatever EMI Valuations that expire on or after one March 2022, and any new EMI Valuations created on or later 1 March 2022 can automatically be treated equally having been extended past 30 days, so that they are valid for a total of 120 days. ( Encounter HMRC Employment Related Securities Message 35 (June 2022))