For those who aren’t familiar with the film ‘A Bugs Life’, the main villain Hopper is described as ‘Quite the motivational speaker’ after he brutally punishes his workers. If you’d like a more modern approach to motivation take a look at this…
One of the most common questions that business owners find themselves asking is “how do I get the most out of my team?” My employees are competent at what they do but they would do so much more “if only they cared as much as me”. Sound familiar? It’s a common issue that our clients speak to us about.
So how do you incentivise your employees in a way that REALLY motivates them to drive YOUR business forward? And how do you do that without having to give bonuses that give rise to huge PAYE bills?
Share option schemes are a great way of doing just that. You offer your employee(s) the option to buy shares in your company at today’s price, or for free if you feel it is more appropriate. You then choose a future date when the employee can receive those shares. It might be in 6 months, a year, or 5 years time. Your employee now has a vested interest in growing the business – their shares are going to be worth more and they will receive some dividends on top of their salary.
When set up through an HMRC approved scheme, there will be no tax consequences for the employee receiving shares at a discount so you don’t need to worry about receiving a big PAYE bill.
If you have found this post useful and would like to know more about tax efficient share schemes, why not book in for a free consultation using the form below. Link in with James Sheard, email email@example.com or phone 0161 947 9207