Enterprise Management Incentive scheme
Build your dream scheme: EMI made easy
Create and manage your EMI scheme on our automated platform with unlimited help from our EMI experts.
50,000+
companies use SeedLegals
1 in 4
EMI schemes in the UK are set up on SeedLegals
up to 4 x
lower price than lawyers and accountants
Reward and retain your team
EMI share options are a low cost, tax efficient way to reward your UK staff with equity.
Get help from experts
Our EMI experts have an in-depth understanding of all the terms related to your scheme. They’re on hand to guide you and review your scheme every step of the way.
Save money
Our pricing is low and transparent (a fraction of the cost of lawyers and accountants). Unlimited expert help is included - no hidden costs.
Build your dream team
Make your company a great place to work by giving share options. Our EMI plan includes a portal to help option holders stay engaged and motivated.
Boost efficiency
Create and run your scheme on one automated platform, save time using our guided workflow and eliminate errors. Your scheme is customisable and fully compliant with HMRC.
Employee share option schemes made easy
The most tax-efficient option scheme for your staff - and for you
Join over 14,000 UK companies using EMI schemes.
Attract, retain and motivate staff - Align your team with your company goals
- Get Corporation Tax relief for your company
- Grant tax-advantaged options to your staff
Set up EMI share scheme
The easy way to create and run your EMI scheme
Generate all the documents automatically. Our EMI experts check the details for you and they're on hand if you need any help.
- Build and customise your scheme
- Sign and store all the documents on SeedLegals
- Add new joiners anytime, issue option grants instantly
- View options issued and exercised
EMI share option schemes
Employee dashboard for your team
With our easy-to-use option holder portal, employees can watch the worth of their options grow and track vesting.
- Employee portal included in your membership
- Keep employees motivated and engaged
- For options holders: track vesting
- For options holders: use the calculator to see what options would be worth for any valuation
Fast and accurate EMI valuation
Get an accurate valuation and the best deal for your staff
Our valuation tool builds your EMI valuation report in minutes to help you achieve the best possible discount for your employees - up to 70%.
- Get an accurate EMI valuation for your company and employees
- Trust our proven, HMRC-compliant process
- Speed up your EMI valuation and get approved fast
Tripartite agreement - coming soon 2023
Want to offer options from your own shares?
Tripartite agreements allow you to allocate options against your personal shares so you can grant options without diluting other shareholders.
- Grant options to employees from your own equity
- Add on to your EMI scheme
- Ask us for help with tripartite grants - coming soon
EMI scheme help
Unlimited expert help is included
Our team of EMI experts is on hand to guide you where needed, answer your questions and review your documents.
- Unlimited support is included at no extra cost
- Talk to us via chat, phone, email or video call
- Ask us anything - we're here 9am to 6pm Monday to Friday
How to set up your EMI scheme
FAQs
Frequently asked questions about EMI share option schemes
What is an EMI share option scheme?
The EMI share option scheme is an HMRC initiative that allows UK businesses to give share options to their employees with significant tax benefits. It’s designed to support smaller businesses and make granting equity easier as a tool to attract and incentivise staff.
You can read more about EMI schemes in our article: Share options explained: the essential guide for UK startupsHow do I set up an EMI scheme?
On SeedLegals it’s easy - and we’ll help you at every step.
- Find out if you qualify for EMI (read our post You can read more about EMI schemes in our article Does your company qualify for an EMI option scheme?
- Create your option pool
- Create your option scheme in minutes using our guided workflow
- Choose vesting and exercise rules
- Pass a board resolution to adopt the option scheme
- Grant the options
- Enter your team members’ details and details of the option grant
- Send out the option agreements to your team for signatures
- Log in any time to view your scheme at a glance and add new option holders in minutes
What do SeedLegals EMI experts help with?
Our EMI experts have helped thousands of companies create their schemes. The team has an in-depth understanding of HMRC’s guidelines and all the terms in your EMI scheme. We can help you:
- Decide on types of options to offer
- Set the exercise price
- Determine vesting periods
- Review your documents and scheme
- Answer any questions
We set up 1 in 4 EMI schemes in the UK, so we have plenty of experience to draw on.What are the tax benefits of EMI options for my business?
Each company and individual is unique so we recommend you consult your accountant or tax specialist.
With an EMI option scheme, your company can claim Corporation Tax relief when the employee sells the shares and when they exercise the shares (if those shares were granted at a discount).
- If you grant an employee options at the actual market value (AMV), the Income Tax charge when they exercise the options is zero, so there is no Corporation Tax deduction in this scenario.
- If you grant an employee options at a discount, the Income Tax they pay is on the difference between the actual market value (AMV) and the discount. Your company can claim Corporation Tax relief equal to the Income Tax amount the employee paid.
- If an employee sells the shares, they will pay Capital Gains Tax. Your company can claim a further Corporation Tax deduction equal to the amount of Capital Gains Tax the employee paid.
You can read more about this in our article: Tax implications on share option schemes.What are the tax benefits of EMI options for employees?
Each individual is unique so we recommend you consult your accountant or tax specialist.
HMRC’s very popular EMI scheme allows tax advantages for both employees and companies that are eligible for the scheme. The tax advantages of EMI options for employees include:- No Income Tax or National Insurance Contributions (NIC) is charged when the options are granted
- If the employee exercises their options at the pre-agreed market value (AMV) with HMRC, they won’t pay Income Tax or NIC on exercise either
- If the employee has held their options or shares for at least two years before they sell them, the Capital Gains Tax they pay on sale will be reduced from 20% to 10%
You can read more about this in our article Tax implications on share option schemes.What are the qualifying conditions for an EMI scheme for companies?
- You must be actively trading and have a permanent establishment in the UK
- You must have fewer than 250 full-time employees when the EMI options are granted
- Your company must have £30 million or less in gross assets
- You must not have already allocated over £3 million worth of EMI shares
- You must not be owned by a parent (holding) company or under the control of another company
- If you have a subsidiary company, it must also meet the EMI qualification requirements
- You must notify HMRC within 92 days of granting the options
- Your company must not carry out a substantial amount of the ‘excluded activities’. You can find the list of excluded activities at the gov.uk website
To see the full list of EMI rules, head over to the HMRC manual for EMI schemes.What are the qualifying conditions for an EMI scheme for employees?
- They are a legal employee on your PAYE payroll
- They work at least 25 hours a week or 75% of their weekly working time
- They hold less than 30% of all company shares
- The total market value of the options they hold doesn’t exceed £250,000
How much does it cost to set up an EMI scheme?
Traditionally, setting up an EMI option scheme was expensive: it could cost up to £5,000 to £10,000. You’d need to hire a law firm to draft the scheme rules and bring an accountant in to draft a valuation for submission to HMRC. This could take months and you’d be on your own when managing the scheme with HMRC.
SeedLegals has changed all this. Using our platform, you can create your EMI scheme, set vesting conditions, have law-firm-quality legal drafts, a market-leading valuation, and get help with all the ongoing management of the scheme. This comes at a fraction of the cost of lawyers or accountants: with SeedLegals it’s £2,490 per year to set up, grant and manage your options. . To run your scheme, you’ll need a SeedLegals Options Subscription, which includes a range of services and discounts.What is the share options calculator and how does it work?
The SeedLegals options dashboard makes it easy for your team to understand the value of their options.
When you share the Option Agreement with a team member, they will get an invitation with a link to create their own SeedLegals account.
On their dashboard, your option holders can see the vesting status of their allocation, their Option Agreement, Option Certificate and Share Certificate (after they have exercised their options).
As well as this, they can use the options calculator. The calculator helps answer two common questions: how much are their options worth based on a specified valuation (they can type in any valuation to model different scenarios), and how much it would cost to exercise a given number of their vested options.
For more information about this helpful tool, see our article about the options dashboard and calculator.
More resources on EMI option schemes
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