Question 1

What is an EMI scheme?

Accepted Answer

An EMI (Enterprise Management Incentive) scheme is a tax-advantaged share option scheme designed for smaller companies. It allows businesses to grant share options to employees worth up to £250,000 each, with significant tax benefits. Employees pay no income tax or National Insurance on the grant or exercise of options (if exercised at market value), and only pay Capital Gains Tax when they sell the shares. For companies, it's a powerful tool to attract and retain key talent without immediate cash outlay.

Question 2

Who qualifies for an EMI scheme?

Accepted Answer

To qualify for an EMI scheme, your company must: have gross assets of £30 million or less, have fewer than 250 full-time equivalent employees, not be controlled by another company, carry on a qualifying trade (most trading activities qualify, but some like banking and property development don't). Employees must work at least 25 hours per week or 75% of their working time for your company.

Question 3

How much does it cost to set up an EMI scheme?

Accepted Answer

EMI scheme setup costs vary depending on complexity, but typically include: company valuation (often agreed with HMRC in advance), legal documentation, scheme design and planning, and HMRC notification. Phil Southern provides end-to-end EMI scheme implementation, working with your existing advisors to ensure a cost-effective and properly structured scheme.

Question 4

What are the tax benefits of EMI schemes?

Accepted Answer

EMI schemes offer significant tax advantages: No income tax or NI on grant of options, no income tax or NI on exercise (if at market value), Capital Gains Tax only applies when shares are sold, Business Asset Disposal Relief may reduce CGT to just 10% on the first £1 million of gains. For employers, the costs of setting up an EMI scheme are tax deductible, and a corporation tax deduction may be available when options are exercised.

Question 5

How many EMI schemes has Phil Southern implemented?

Accepted Answer

Phil Southern has successfully designed and implemented 4+ EMI schemes for SMEs across Yorkshire and the UK. His experience covers businesses from £2m to £20m turnover across various sectors including manufacturing, professional services, and technology. Each scheme is tailored to the company's specific objectives around talent retention, succession planning, and employee motivation.

Question 6

What is a part-time Finance Director?

Accepted Answer

A part-time Finance Director (also known as a fractional CFO) provides senior financial leadership to businesses on a flexible basis, typically 1-3 days per week. This gives SMEs access to experienced financial expertise - including EMI scheme implementation - without the cost of a full-time hire.

Question 7

What is an Employee Ownership Trust (EOT)?

Accepted Answer

An Employee Ownership Trust is a tax-efficient way for business owners to transition ownership to employees. When selling to an EOT, business owners can receive the sale proceeds free of Capital Gains Tax, while employees gain a stake in the company's success. Phil Southern has established 2 EOTs for client businesses.

Strategic financial leadership for growing businesses

Phil Southern FCMA

EMI Scheme Implementation

Tax Efficient

Retain Talent

No Cash Outlay

HMRC Approved

Ready to implement an EMI scheme?

How I help businesses grow

EMI Schemes

Employee Ownership

Business Planning

Financial Control

Due Diligence

Team Development

Proven results across diverse sectors

Industries I work with

Lighting Wholesaler

Building Services

B2B Service Provider

Industrial Power Tools

Property Development

Recruitment Agency

Ecommerce

Manufacturing

Giving back

Ready to discuss your business?