Q: Do I need a lawyer to set up a share plan?

Yes. Legal advice is an important part of setting up an employee share plan. I work alongside legal, tax, payroll and HR advisers to help turn technical advice into practical implementation and clear communication.

Question 1

What share plan is right for our business?

Accepted Answer

The right share plan depends on what you're trying to achieve, the size of your business and who you want to reward. For many growing businesses, EMI is often the first option to consider because of its flexibility and tax advantages. Larger private and listed companies may be better suited to CSOP, SIP, SAYE or LTIPs.

Question 2

Do we qualify for EMI under the new 2026 rules?

Accepted Answer

From 6 April 2026, more businesses will qualify for EMI following changes to the eligibility limits. The new limits include gross assets of up to £120 million, fewer than 500 employees, a £250,000 individual limit and a £6 million company-wide limit for unexercised options. Other qualifying conditions still apply.

Question 3

We're too large for EMI. What are the alternatives?

Accepted Answer

If EMI isn't available, there are still several options including CSOP, SIP, SAYE and LTIPs. The right choice depends on your objectives, who you want to reward and how you want the plan to work.

Question 4

Are employee share plans tax efficient?

Accepted Answer

HMRC-approved share plans such as EMI, CSOP, SIP and SAYE can offer valuable tax advantages where the qualifying conditions are met. The tax treatment depends on the type of plan and how it is structured.

Question 5

Do we need a company valuation?

Accepted Answer

For private companies, a market valuation is normally required to support the tax-advantaged treatment of plans such as EMI. I work alongside valuation specialists and can introduce clients to trusted experts where required.

Question 6

How long does it take to put a share plan in place?

Accepted Answer

A straightforward EMI plan typically takes around four to six weeks, including valuation, legal documentation and implementation. Other plans may take a little longer depending on their complexity.

Question 7

What happens when an employee leaves?

Accepted Answer

This depends on the rules of your share plan. Most plans explain what happens when someone leaves the business, although the outcome may differ depending on the circumstances.

Question 8

What ongoing administration is required?

Accepted Answer

HMRC-approved share plans must normally be registered with HMRC's Employment Related Securities service and an annual ERS return submitted by 6 July each year. Accurate record keeping is also essential.

Question 9

Why do employee share plans sometimes fail?

Accepted Answer

In many cases, employee share plans fail to deliver their full value because employees do not fully understand what they have been given or why it matters. Clear communication is just as important as good plan design.

Question 10

Do I need a lawyer to set up a share plan?

Accepted Answer

Yes. Legal advice is an important part of putting a share plan in place.

My role is different. I work alongside your legal, tax, payroll and HR advisers to help turn technical advice into practical implementation and clear communication, so everyone understands how the plan works in practice.

Frequently Asked Questions About Employee Share Plans