Incentivising your people

Your people are your most important asset. It is key to find the right way to incentivise your staff – cash or equity; shares or options; Christmas bonus or Christmas party.

You have so many choices in how to reward everyone – and they all have tax consequences, just two examples would be:

Equity

There is a huge difference (potentially around 50.8% in tax) between approved and unapproved share schemes. We can help you find the most appropriate share scheme, often, but not always, an Enterprise Management Incentive Scheme because of the tax breaks. We can help you to decide on when incentives should accrue – now or on an exit; and on quantum, a percentage of the whole or just of the future growth to reflect individual contribution.

Benefits in kind

Getting things wrong on benefits can create a tax bill for your business or your staff, which is never welcome. As an example, take a Christmas party – if the cost per head is £149 there is no tax charge but at £151 per head either your business or the employees have to pay tax on the whole amount. An expensive £2!

Once you have decided what you want to do, we can explain the tax implications and discuss any changes to make things more tax efficient. We also provide Outsourcing and Payroll Services should you require our assistance in these areas.