You have more than likely come across these during your career but might not be familiar with the term. Employment Related Securities (ERS) are away for a limited company to gift shares in the company to employees, including directors.
All ERS schemes need to be registered with HMRC, even if they are one-time affairs, you will need to file a return for each year the scheme is active. These schemes can be a good way for employers to retain, reward and incentives staff.
ERS schemes can either be tax-advantaged or non-tax advantaged. The following ERS schemes are classed as tax-advantaged:
· Share Incentive Plans (SIP)
· Save as You Earn (SAYE)
· Company Share Option Plans (CSOP)
You may choose to grant shares through non-tax advantaged schemes if tax-efficient structures aren’t right for your business.
Talk to your accountant about setting up an ERS scheme, they can be a complex area with their own set of rules and filing responsibilities.
Have you been gifted shares in a company you worked for in the past?
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