+44 (0) 207 407 9899 eile@towerbridgetax.com
Tower Bridge Tax Practice

Tower Bridge Tax Practice

Employee Incentives

All UK  corporate employers regardless of  their size should consider adopting, as a tool for incentivising their workforce, tax effecient employee incentive schemes, such as the save-as-you-earn scheme (SAYE), EMIs, share incentive plans (SIPs) and the HMRC approved company share option plan (CSOPs).  Non-corporate employers have less choice but nevertheless there are opportunities to remunerate staff in a tax efficient manner with salary sacrifice schemes and staff suggestions schemes.

We have considerable expertise in this area and can explain and advise on the most appropriate alternatives for employers, as well as drafting the documentation and assisting in the implementation of such schemes.

In addition we have expertise in bespoke bonus schemes, including salary sacrifice schemes, suggestion award schemes, phantom option schemes and ‘nil paid’ schemes. We advise on performance conditions and vesting terms, standard market practice for AIM companies, ABI requirements for fully listed companies, and overseas issues.

We aim to provide a cost effective package of advice, drafting and implementation of schemes.  Recent instructions have included advice to a close company on setting up an employee trust; advising a VCT on setting up a ‘nil paid’ share scheme in one of its investments;  advising on setting up an EMI scheme; advising generally on EBTs.

  • Advising on and implementing bespoke bonus schemes, salary sacrifice schemes, suggestion award schemes
  • Drafting rules, aggreements, and ancillary documentation for all types of employee incentives
  • advising on and implementing ‘nil paid’ share schemes
  • Liasing with HMRC as required under statute
  • Providing advice to employers relating to performance conditions and vesting terms
  • Advising on standard market practice for AIM companies and ABI requirements for fully listed companies
  • Providing follow up services for ongoing schemes

Our areas of expertise include but are not limited to the following:-

  • Transactional work including buying and selling businesses and companies, acting for either the buyer, sellers or advisors to the transaction
  • Negotiating tax deeds and warranties in share sales and business sales, and listings
  • Advising on tax-related issues on corporate restructuring and associated matters and applying for clearance
  • Providing tax advice relating to limited liability partnerships (“LLPs”)
  • Providing advice on issues relating to EIS and VCTs and applying for clearances
  • Relevant UK taxes include corporation tax, capital gains tax, VAT, stamp duty and stamp duty reserve tax (“SDRT”), taxation of interest, withholding taxes, capital allowances, PAYE, NIC and issues relating to self-assessment
  • Enterprise Incentive Schemes (“EIS”) and Venture Capital Trusts (“VCT”)