Employment Tax & Share Schemes

The Guidance Notes below cover a broad range of applied knowledge in respect of employment tax and share schemes that has been provided to our clients, and updated to reflect the companies’ feedback and practical experience.

  • GNT 10: EMI Share Options

    This guidance note outlines the main features of EMI options and the tax treatment of such options. (Password required)


  • GNT 30: Employee Shareholder Shares - Essentials

    This guidance note explains the benefits offered by ‘employee shareholder shares’ and the conditions that need to be fulfilled. This is the most tax efficient UK regime for offering shares to management and employees and since its introduction in 2013 it is being adopted on an increasing basis. (Password required)


  • GNT 34: Termination Payments

    The taxation of termination payments is one of the top five items that HMRC are likely to review in any employer compliance visit. The details in this Guidance Note seek to provide a brief summary of the likely issues and the risks associated with such payments. (Password required)


  • GNT 40: EMI Valuations

    Knowing the value of the shares under an EMI option as at the date of grant is vital in order to be sure of the tax treatment on exercise. The value of shares to be put under EMI options may be agreed in advance with HMRC and we recommend that this be done in all cases. This will, in most cases, involve the preparation of a valuation report for submission to HMRC Shares and Assets Valuation. This Guidance Note explains the approach and makes helpful recommendations. (Password required)


  • GNT 46: Academic Spin-Out Relief

    Spin-Out Relief legislation was introduced in Finance Act 2005 as a way of encouraging and rewarding investment by individual professionals in intellectual property ventures and spin-outs from qualifying institutions. The relief allowed individuals, who were closely involved in the creation of the intellectual property, to benefit from its success. This note summarises the main conditions for qualifying for Spin-Out Relief as well as demonstrating what relief is available. (Password required)


  • GNT 48: Employment Status

    Incorrectly classifying an employee as a self-employed worker can be one of the most individually costly income tax and national insurance errors a business can make. Where HMRC are successful in their endeavour and reclassify such an individual as an employee they will then review the payments made on the engagement for usually up to 4 years (for PAYE unless a case of fraud) and seek the recovery of the PAYE, NIC, Employers NIC, interest and a penalty due on the amounts. (Password required)


  • GNT 54: PAYE Settlement Agreements (PSAs)

    PAYE Settlement Agreements (PSAs) can provide a significant relaxation of the requirement to report certain categories of expenses and benefits on P11Ds or through payroll. Care must be taken however to ensure that the timing and content of an application is appropriate and work is still required to ensure the PSA is calculated and filed accurately. Significant changes to the PSA process are to be made from 2018-19 although details are not currently known. (Password required)


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