Employee Incentive Arrangements
Attract and retain top talent with employee incentives that align staff to your business goals, fit in with your company’s plans, constitution and shareholders, comply with regulations, and don’t break the bank.
Employee incentives that give staff a real stake in the company they’re working to build offers tangible benefits to both growing and established businesses.
But careful planning and expert legal advice are needed to make sure that your share plan can cope with future changes to your company and workforce, and takes advantage of whatever tax efficiencies and reliefs are available.
That’s where we come in…
Enterprise Management Incentives (EMI) |
Most suitable for small, high-risk companies, this scheme provides rewards for employees that help the company grow with very favourable tax treatment. Our expert lawyers can help assess your company’s suitability for an EMI plan, support the valuation process, draft the option agreements and other required documents, and assist in your dealings with HMRC.
Company Share Option Plans (CSOPs) |
We can help you evaluate whether your company is a good fit for a CSOP and prepare all the relevant paperwork including self-certification.
Save As You Earn Schemes (SAYE) |
These offer employees the opportunity to purchase ordinary shares in your company at a favourable price. We can support the set-up process, including assessing your suitability for the scheme, support the valuation process, draft the option agreements and assist in your dealings with HMRC.
Share Incentive Plans (SIPs) |
We can help you design and put in place your SIP, including setting up performance measures for staff, reviewing staff terms and conditions, liaising and communicating with employees and supporting ongoing compliance.
Employee Ownership Trusts (EOT) |
We can advise on the merits of selling your company to an EOT, and help you structure and implement the sale.
Non HMRC tax advantaged incentive plans
Non-tax advantaged employee incentive arrangements do not need to meet specific legal rules like the HMRC tax advantaged plans mentioned above, so they can be quick and easy to set up. However, they may need to be structured carefully to attract the most effective tax benefits. We can work alongside you to determine if a non-tax advantaged incentive plan is right for you and help with structuring, set up and ongoing administration:
Ordinary and preferred shares |
We can re-structure your company so you can make awards of ordinary or preferred shares to employees and advise on dilution, share classes and special rights for shareholders such as voting and dividend rights.
Growth share schemes/Hurdle share schemes |
These arrangements work well for early-stage and growing businesses, but the conditions that apply and issues relating to company valuation need to be carefully managed. We can review your company’s suitability for growth/hurdle share arrangements, draft the growth/hurdle share subscription agreement, assist with company valuation and make the required amendments to your company’s constitution.
Share options and restricted stock units |
These arrangements don’t require HMRC clearance or company valuation, and the paperwork can be more straightforward. Our expert team can advise whether a non-tax advantaged share option or RSU arrangement is right for you and support you through the implementation process.
Examples of our work
Why choose Harper James Solicitors?
We’re a modern law firm with a difference. Our innovative remote operating model means that you can access expert City-grade legal advice from partner-level solicitors at a fraction of the cost of traditional law firms. Our senior solicitors have all been recruited from top 100 UK law firms or large international businesses. Our expert employee incentive lawyers include:
What our clients say
We pride ourselves on delivering an excellent service for clients, but don’t just take our word for it.
We are a small company and the process of setting up a company share scheme was pretty daunting. Abby Watson and Harper James Solicitors provided expert advice to ensure we understood the process and drafted all relevant documentation. We were very impressed with the service received and would recommend the firm to others.
We rely on Harper James to provide us with support across a full range of service areas, from commercial contracts and employment issues to fundraisings and investments. The team at Harper James are always available to provide us with cost effective, pragmatic and commercially focused advice.
Harper James provides my small growing business with a scalable, reliable, team-oriented approach to legal advice. Whenever we face a problem, I know that Harper James are there to provide helpful and cost-effective advice, to scope out the options, make clear the costs and risks, and give me the information I need to make decisions.
Harper James is a brilliant example of a company disrupting a traditional industry. Suddenly Solicitors become relevant and accessible for start-ups & small enterprises, with the best in-class knowledge of all major legal areas. I’ve used the business now for a year, and the Enterprise plan has been perfect for budgeting my company’s outgoings, and has given me a piece of mind when tackling key, decisive issues. Thank-you HJS!
The support, advice and guidance from Harper James was absolutely vital. Shubhu, Callum and the team there were always on hand to deal with any issues that we needed help with as the deal progressed. This is an exciting new stage in the development of the business.
