Missed HMRC’s EMI Share Scheme deadline? Here’s what you can do

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HMRC recently suspended EMI scheme approval. There’s been no update as yet but we’ve been inundated with questions from business owners wondering what they should do having missed the 6th April deadline.

Here’s what we’ve been suggesting to customers at Vestd:

• Submit your valuation for approval from HMRC.

• Once you have your valuation pre-assurance, wait till the end of the valuation period (90 days) and don’t set up the EMI scheme just yet.

Following an update from HMRC, you’ll then have three options…

1. If EMI is reinstated within your 90 day valuation window, happy days, set up your scheme and submit your ERS submission.

2. If it’s reinstated outside of your valuation window then apply for a valuation extension and then set up your scheme.

3. If it’s not reinstated then you could set up an unapproved options scheme instead. Same structure and agreements just different tax treatment.

If the EMI tax benefits are not reinstated you should also consider growth shares as a more tax-efficient alternative to unapproved options. Much lower CGT (rather than income tax on unapproved options).

If you are still unsure, drop us a line.