16 C
Lancashire
Friday, July 19, 2024

Could share schemes improve business performance and talent retention in Lancashire?

HMRC has published its latest batch of share scheme statistics, which showed that UK employees enjoyed estimated tax relief of over £1bn from tax-advantaged share schemes in the year to April 2016.

This year’s figures showed particularly strong growth in the use of Enterprise Management Incentives (known as EMI options), with the value of shares under EMI options granted in the year increasing by 23 per cent from the last set of statistics published two years ago. EMI options offer companies the opportunity to give employees a chance to share in the growth and success of a business, with any gains made on the sale of the EMI shares generally only subject to 10 per cent tax, which compares favourably to cash bonuses or ‘unapproved’ share options which are taxed at rates of up to 47 per cent for the employee and 13.8 per cent for the employer.

Although HMRC does not provide a regional breakdown of the statistics, there has been huge demand from North West businesses for share schemes over the past couple of years. Not least for EMI schemes where employers want to provide a real incentive to key employees to drive business performance, increase shareholder value, and give those individuals a stake and sense of ownership of the business.

The North West is a hot bed of entrepreneurial businesses and high-growth companies, and this could explain the increase in demand as leaders of ambitious businesses increasingly recognise that performance can be substantially improved where employees have a stake in the company they work for. The fact that this can be done in such a tax-efficient way, enabled by the government’s desire to encourage the small and medium-sized businesses, makes the use of arrangements such as EMI options a no-brainer for many companies to improve performance and retain key talent.

Martin Cooper, RSM’s head of employee share incentives in the North West

spot_imgspot_img

Latest

Bin it and bag it: Jollyes launches nationwide free poo bag giveaway

Retailer Jollyes will open its next brand new store...

Benidorm’s Steve Pemberton raffles £30,000 of personal memorabilia for charity

Benidorm star Steve Pemberton has donated priceless memorabilia from...

Colne gears up to host major British cycling event

Some of the top riders in the country will...

Investigation launched following fatal fire in Blackpool

A joint investigation has been launched following a fatal...
spot_img

Subscribe to our newsletter

Business Lancashire will use the information you provide on this form to be in touch with you and to provide updates and marketing.

Don't miss

Choirs have just two weeks left to enter prestigious singing competition

There are just two weeks left for choirs to...

England vs Spain Free Bets: Get 50/1 on England to Win the Euros! – Euro 2024 BetVictor Sign-Up Offer

The country waits in anticipation as England prepares for...

How to Style Your Display Cabinets

When it comes to enhancing the aesthetics and functionality...

Gareth Southgate steps down as England manager

England boss Gareth Southgate has announced it's "time for...

More News

Free travel for military personnel on Armed Forces Day

Free travel will be available on Stagecoach bus and tram services for military and ex-military personnel on Armed Forces Day. This Saturday is a chance...

Lancaster shop worker fined for selling vape to underage girl

A man working in a Lancaster vape shop has been fined £916 for selling a disposable flavoured vape to a teenager without asking for...

One in three businesses in Lancashire fail test knife purchases

Trading Standards revealed that one in three Lancashire businesses failed their test purchases for knife sales. Operation Sceptre, an operation focusing on knife crime, involved...