I want to give some shares to one of my key employees are there any tax implications?
The answer unsurprisingly is yes!
The employee will pay income tax on the difference between the market value of the shares and any amount she pays to acquire them.
For most private companies, no NIC is payable by either employer or employee, and the income tax is paid by submitting a self-assessment tax return rather than via PAYE.
There are a number of ways we can help to manage the income tax payable and so to facilitate employee share ownership.
In our experience this does work very well and if structured correctly can act as a very effective employee incentive. In the next couple of weeks we will cover a couple of ideas / pitfalls for your consideration.
For more information, please contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.