Attract and retain top talent with an
EMI Options Scheme
The tax-efficient way to reward employees with equity and accelerate your growth.
Join the UKs fastest growing startups and SMEs
What is an EMI Option Scheme?
The most widely adopted HMRC backed way to reward employees with equity, the Enterprise Management Incentive scheme is a tax-advantaged share option scheme specifically designed for UK-based startups, SMEs and growing companies.
EMIs give employees the right to buy shares in a company at an agreed price after meeting certain requirements, e.g. performance and/or service period. Benefits of using the scheme include:
Attracts and retains talent
Boosts employee motivation and performance
Improved tax efficiency and cashflow management
Potential for significant gains
Tax efficiency
Employees typically pay Capital Gains Tax (CGT) on any increase in value of the shares (if the conditions for Business Asset Disposal Relief (BADR) are met), instead of Income Tax and National Insurance.
Tangible reward for loyalty
End-End EMI Option Scheme Design and Management
Simply send us your latest financials and we’ll do the rest. We work directly with you or your Accountant, whichever you prefer.
Don’t want the complete package? Talk to our team about one-off valuations, EMI Returns or Grant Notifications.
Share Valuation
We’ll complete a share valuation to establish the market value of your company’s shares and submit an initial application to HMRC.
EMI Scheme Design
We’ll advise on terms that work best for your business. This includes:
- Exercise price (at or above market value for tax efficiency).
- Vesting conditions (e.g., time-based or performance-based).
- How many shares will be allocated and to whom.
Legal Documentation
HMRC Registration
Scheme Compliance Management
"It was a no-brainer to use the team for our EMI Valuation. It was seamless, fast and efficient - the team were available to answer all of my questions along the way so I felt I had control and understanding of the process too."
Elena Rueda
CEO & Co-Founder, Dama Health
How to get started
EMI consultation
Book a free, no obligation call with our experienced team to learn more about how your business could benefit from the EMI Options Scheme.
Complete valuation within 48 hours
We'll complete and submit a valuation to HMRC in 2 working days.
Scheme set up
Our advisory team will work closely with our legal partners to ensure your scheme is set up and documented in the best way for your business.
Get back to business
We'll manage your ongoing compliance requirements once the scheme is launched, so you can get back to doing what you do best.
Frequently Asked Questions
What is an EMI option scheme?
An EMI option scheme is a tax-advantaged programme designed to help companies grant share options to employees. It allows employees to buy shares in the future at a pre-agreed price, benefiting from potential increases in the company’s value.
Who qualifies for an EMI option scheme?
Employees must work at least 25 hours per week (or 75% of their time) and not own more than 30% of the company. The company must meet HMRC criteria, including being independent, having fewer than 500 employees and engaging in a qualifying trade.
What are the tax benefits of EMI schemes for employees?
Employees usually pay no Income Tax or National Insurance Contributions (NICs) when options are granted or exercised (provided the exercise price matches or exceeds market value). They may then pay Capital Gains Tax (CGT) on any profit when they sell their shares, often at a reduced rate if the conditions for Business Asset Disposal Relief (BADR) are met.
Can EMI options be granted at a discount?
Yes, but granting options below market value may trigger Income Tax and NICs on the difference at exercise. Setting the exercise price at market value ensures maximum tax benefits which is why having a professional valuation done is so important.
What happens if an employee leaves the company?
Options may lapse unless the employee qualifies as a “good leaver,” such as through redundancy or retirement. Terms for leavers should be clearly outlined in the option agreement.
What happens to EMI options in a company sale?
In a sale, EMI options typically vest early so employees can exercise them and participate in the transaction. Tax advantages still apply if the scheme’s conditions are met.
What are the reporting requirements for EMI schemes?
Companies granting EMI options on or after 6 April 2024, must tell HMRC about this on or before 6 July following the end of the tax year in which the grant is made.
Can EMI options be granted to non-UK employees?
No, EMI options are only for UK-based employees who meet residency and working time requirements. Non-UK employees may be eligible for alternative share schemes.
What is the maximum value of EMI options an employee can hold?
An employee can hold EMI options over shares worth up to £250,000 at the time of grant. Exceeding this limit disqualifies the excess from EMI tax benefits.
How long do EMI options last?
EMI options can last for up to 15 years from the date of grant. Unexercised options expire after this period unless otherwise specified in the agreement.
EMI Options Schemes made simple
- Free Consultation
- Advisory Experts
- Built for SMEs