We’ll work with you to comply with the key timings in setting up your EMI option scheme.
Grant EMI options within 90 days of agreeing the EMI valuation with HMRC
EMI options should be granted within 90 days of the date of the agreement of the EMI valuation by HMRC to qualify for the agreed valuation. After the 90 days has passed, or sooner if there have been any changes in the company’s circumstances that may affect the value of its shares before the EMI options are issued, another EMI valuation should be agreed with HMRC before granting more EMI options.
Register the EMI option scheme with HMRC
The EMI option scheme has to be registered with HMRC as an employment related security (ERS). HMRC will issue a reference number within 7 days of registration of the EMI option scheme. The reference number is needed to notify HMRC about any grant of an EMI option. See “Register your EMI scheme and add Simply Equity as tax agent“.
Sign the EMI option agreements
If many EMI options are being granted, then once the EMI option agreements have been signed by the employees, the company should sign them all on the same day so that all of the EMI options have the same start date. This will make administration of the EMI options easier.
Make an EMI notification by 6 July
An EMI notification of the grant of the EMI options must be made online to HMRC by midnight 6 July after the end of the tax year of the grant of EMI options – see HERE. We can do this for you if you have engaged us to maintain your EMI option scheme. You’ll also need to have engaged us as your tax agent – see “Register your EMI scheme and add Simply Equity as tax agent“.
Submit an EMI annual return by 6 July
An EMI annual return must be made online to HMRC by midnight 6 July each year following the end of the tax year of the grant of EMI options – see HERE. We can do this for you if you have engaged us to maintain your EMI option scheme. You’ll also need to have engaged us as your tax agent – see “Register your EMI scheme and add Simply Equity as tax agent“.
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Please Note: This article contains general information only and Simply Equity is not, through this article, issuing any advice, be it legal, financial, tax-related, business-related, professional or other. This article is not a substitute for professional advice and should not be used as such. Simply Equity does not assume any liability for reliance on the information provided in this article.