Employee Incentive Arrangements
Attract and retain top talent with an employee incentive arrangement that aligns staff to your business goals, complies with regulations, and doesn’t break the bank
Setting up an employee incentive plan that gives staff the chance to have a real stake in the company they’re working to build offers tangible benefits to growing and established businesses.
But careful planning and expert legal advice is needed to make sure that your company is eligible for HMRC tax advantages, remains compliant, and takes advantage of whatever tax efficiencies are available.
That’s where we come in…
Designing incentive arrangements for employees
Our multi-disciplinary team can support you with:
- Advice on the staff incentive plan that’s right for you
- The steps needed to put your plan in place
- Any regulations that relate to your chosen plan
- Drafting agreements
- The employment law aspects of introducing an employee incentive plan
- Obtaining any necessary clearances from HMRC
- Tax reporting and compliance
- Directors’ remuneration and other corporate governance issues
- Future rights of investors (such as under the EIS and SEIS schemes)
- Potential impact on founders, investors and other stakeholders
As business law experts, we have the skills and experience to help you choose the employee incentive plan that’s right for your company.
Types of incentive arrangements for employees:
HMRC tax advantaged share plans
Enterprise Management Incentives (EMI) |
Most suitable for small, high-risk companies, this scheme provides rewards for employees that help the company grow. 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.
What our clients say
We pride ourselves on delivering an excellent service for clients, but don’t just take our word for it.
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.
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.
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.
As a University spin-out getting the right team of lawyers to support our emerging business was fundamental and the team are always available to provide us with the invaluable guidance and support we require.
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!
Who we help: High-growth businesses
High-growth companies tell us that finding and retaining top talent when a business is scaling is one of their key risk areas, and balancing the needs of founders, investors and employees (while managing cashflow and protecting working capital) is crucial, particularly when considering an employee share plan. That’s why entrepreneurs, start-ups and SMEs lean on us. We know how to get the balance right – introducing an employee incentive plan that aligns with your business strategy now and later down the line.
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:
Pricing plans
Our three transparent pricing packages are designed to give you the widest possible access to high-quality legal advice, whatever the size and nature of your business:
City
Straightforward access to senior solicitors at a competitive rate.
An affordable solution for businesses needing one-off legal support. Receive ‘City’ partner-level expertise at a fraction of ‘City’ prices.
Enterprise
Have legal peace of mind for £189 per month with additional support from £99 per hour.
A monthly subscription legal support package specifically designed for start-ups and smaller businesses.
On-Demand
For businesses requiring 60+ hours of support a year, with prices equivalent to £99 per hour.
Fully account managed quarterly subscription service for businesses with more complex legal needs.
