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Scare schemes

Step-by-step guide to setting up an enterprise management incentive plan

KEY POINTS

  • Are smaller practices losing potential fee income from EMI schemes?
  • Is the employer suitable for and prepared to use an employee share plan.
  • The scheme particulars and preparing the company.
  • The importance of accurate valuations.
  • Notifying HMRC of the scheme and the preparation of returns.

Many smaller firms are often daunted by the prospect of setting up an employee share scheme from scratch. Larger firms employ specialists in specific departments to manage these matters and indeed there are many businesses that make money doing nothing but employee incentivisation planning.

The smaller practice may often outsource their work to one of these firms possibly for some sort of introducer’s commission or split-fee arrangement.

If done carefully however there is no reason why a good...

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