What is an employment-related securities scheme?

Posted on

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?

#ERS #hmrc #employees

0161 505 2712