UHY Ross Brooke Chartered Accountants

Employee share schemes


A company’s desire to give or sell shares to its employees may arise from a variety of objectives which can include:

  • Incentivising employees to achieve better performance;
  • Attracting and retaining staff, particularly in start-up situations where companies have insufficient funds to provide adequate salaries;
  • Enhancing remuneration packages where this can be achieved tax efficiently;
  • Succession planning for major shareholders;
  • Raising equity funding, particularly in management/employee buy outs.

Why use a share scheme?

The outright gift of shares to an employee at less than market value constitutes taxable remuneration in the hands of the employee. The taxable amount is calculated as the difference between the market value of the company’s shares and the price (if any) paid for them and this will be subject to both PAYE and NIC if the shares are tradable.

This can mean that the employee has received shares on which he has to pay tax, but if he doesn’t have the cash to settle the tax liability he might have to sell some of his shares to do so.

  1. Approved Share Option Scheme (CSOP);
  2. Unapproved share option schemes;
  3. Enterprise management incentives (EMI);
  4. Share incentive plans (SIPs).

The first three involve the use of share options. The fourth involves the employer giving a fixed number of shares free of tax and NIC.

Next steps

We have many years experience advising clients’ on the appropriateness and effectiveness of each. If you would like to discuss the possibilities available please get in touch.

What our clients say

If we did not convince you, maybe a few words from our customers will!

Great service from all the team at UHY Ross-Brooke! Always very professional and courteous, it’s a real pleasure to deal with this firm. Phil Kinzett-Evans is extremely knowledgeable and was instrumental in the completion of my EOT. Tracey and Daisy have been a great help through the years with all my tax and vat affairs.

David Klein


I am delighted to recommend the team at Ross Brooke. Their guidance and diligence during the acquisition phase of my business proved invaluable and continues to be so. My firm now rely upon numerous lines of their services and value their personable skills and expert knowledge. I especially appreciate their prompt response to any query raised.

Steve Cook


Thanks for continuing to be visionary in providing a 21 century and digital accounting service to individuals and businesses.  We really appreciate everything that you and your team does for us.

Jo Evershed


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