Employee share schemes

Every business owner will come across a complex tax issue at some point in their business’ lifecycle. At Folio Partners, we aim to understand your business and personal goals, which will inform the tax advice that we provide to you, your business, and your family. We avoid using jargon, and aim to explain complex tax issues in a way that is pragmatic and easily understood.

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Encouraging each team member to think like a business owner

There is no reason why all businesses should not offer equity to their employees. There are lots of different types of schemes, but the motive for issuing equity is always the same – it aligns your team’s interests with your own interests as a business owner. Yes, you have to give away part of your business, but with a properly incentivised team, your business will be more profitable, more successful, and ultimately more valuable.  We’ve spoken to numerous business owners who like the idea of sharing equity with their employees, but don’t know where to start.

At Folio Partners, we can handhold you and your team through the whole process, from dealing with HMRC, to preparing the necessary agreements and guiding your employees through the whole process in a jargon-free environment. Sharing equity in your business should be a really positive experience for everyone, and the key to this is making sure that everyone understands the process properly.

Transforming teams into stakeholders

In our experience, to successfully implement an employee share scheme, there are a few golden rules.

  • All messaging to your team must be clear, and you must stick to deadlines and commitments you have agreed with them. Otherwise, what is intended to be a really positive process can turn into a negative experience.
  • Share schemes are complex, and the legal documents and processes can be difficult for people to understand. But with the right support, this is easily overcome. We are experts in explaining complex concepts to business owners and employees in an easily relatable way.
  • Most share schemes involve some level of tax compliance and reporting to HMRC. This must not be overlooked and submissions must be made on time. We can handle the whole process for you.

If you’d like to explore the different options for sharing equity with your employees, get in touch with a member of the Folio Partners team.