Supporting Growth with the Right Incentives
At Dunkley’s Accountants, we know that attracting and retaining top talent is one of the biggest challenges for ambitious businesses. That’s why many of our clients look to us for tax advice when structuring share incentive schemes for their key employees. Done properly, these arrangements not only reward performance but also align employees’ interests with the long-term success of the company.
Why Share Incentives Matter
Share incentives give employees a direct stake in the business. This motivates staff, fosters loyalty, and can help you stand out in a competitive job market. For growing companies, incentives can also be a powerful alternative to cash bonuses, keeping costs predictable while building long-term value.
The main types of schemes include:
- Enterprise Management Incentives (EMI) – a flexible, tax-advantaged scheme designed for smaller companies.
- Company Share Option Plans (CSOPs) – suitable for larger businesses that want to grant options on a tax-efficient basis.
- Save As You Earn (SAYE) and Share Incentive Plans (SIPs) – popular for wider employee participation.
The Tax Advantages
The benefit of working with a specialist accountant is understanding how these schemes interact with the UK tax system. A well-designed EMI, for example, allows gains to be taxed at capital gains tax rates rather than income tax rates, potentially saving employees thousands of pounds. Meanwhile, companies can often deduct the cost of providing shares or options as a business expense.
However, the rules are detailed, and missteps can mean losing valuable reliefs. That’s where professional advice is crucial.
Tailoring the Right Solution
Every business is different. Some clients want to incentivise a small leadership team, while others are looking for broader employee participation. We take the time to understand your business model, your growth plans, and the individuals you want to reward. From there, we can recommend and implement the most effective scheme.
Final Thoughts
If you’re considering how best to motivate and retain staff, share incentives could be a smart move. With the right structure, you can reward employees, protect cash flow, and strengthen your growth prospects. For clear, practical tax advice, speak to Dunkley’s Accountants in Bristol about how share schemes could work for your business.
Contact Dunkley’s Accountants today on 01454 619900 or email advice@dunkleys.accountants for clear, practical tax advice.