The Complete Guide to Company Share Schemes

Frequently asked questions

• What's a company share scheme?

  A company share scheme is a way for a business to give employees a stake in the company, usually through shares or share options.

• What are the different types of company share schemes?

  Company share schemes in the UK generally fall into two buckets: 

  1. HMRC-approved (tax-advantaged) share schemes

  • EMI (Enterprise Management Incentive)
  • CSOP (Company Share Option Plan)
  • SIP (Share Incentive Plan)
  • SAYE (Save As You Earn)

   

  2. Non-tax-advantaged share schemes

  • Unapproved share option schemes 
  • Growth shares
  • Restricted shares
  • Phantom shares

• What are the benefits of a company share scheme?

  A company share scheme helps attract, motivate and retain great people by giving them ownership in the business. It gets everyone thinking long-term and working towards the company’s success.

  9/10 customers say their share scheme has improved recruitment and retention.

  Plus, it can be a smart, tax-efficient way to reward the team without spending loads of money on inflated salaries or heavily taxed cash bonuses.

• Are company share schemes worth it?

  A company share scheme can be a great way to give the team skin in the game, in a tax-efficient way. If the company's value increases, employees stand to gain. In other words, their shares or options could one day be worth a significant amount.