Ten Secret Things you didn’t know about EMI Schemes
- They let you avoid income tax – people who buy into EMI schemes don’t need to pay income tax. It is something that many people who are offered EMI options like about them.
- Companies can lower their capital gains tax through the use of EMI schemes – this is something they might not share with people who are buying into it, though. Capital gains tax is kept around the ten percent mark by shares in the emi options scheme which allow the value of the shares to be higher or equal to what it was before.
- EMI schemes only work for as long as you are with the company which runs the scheme: if you leave, then you leave the scheme behind as well. All the benefits of the scheme are lost for anybody who leaves.
- EMI options are there to help smaller businesses and start-ups attract and keep good employees over time. The idea behind it was that smaller businesses and start-ups don’t have much to offer to more experienced potential employees, and so they would suffer from the lack of experience. EMI provides an incentive for these potential employees to take a chance on the business.
- EMI benefits everybody involved, in multiple ways. It is good for both the company and the employee themselves, in multiple ways. These options allows both sides to benefit from increase shares and share options, which means that they will both be more inclined to work for the benefit of the company and of each other.
- EMI allows for national insurance payments – instead of having to pay them every month, EMI lets the people who use their options skip paying them as long as they are paying into the scheme itself. It means a single stop for every payment.
- EMI is usually non-transferable between companies, perhaps as a way of keeping people from simply walking away when they feel their time is done, or they have enough in the pot. EMI lapses when you leave the employment which offers it – there is no taking it from one company to another.
- EMI allows people to be more involved with the top levels of their company. EMI is a way for shareholders and employees both to work together to bring the company to the top of its game, so that everybody can then benefit from the increased share values.
- Morale is shown to be improved for employees who think that their employers have their best interests at heart. EMI provides a way for employers to give incentives to their employees to work their hardest, as the options it has gives people a tangible benefit to look at their work as part of a whole.
- EMI gives a reason for everybody to pull together in a company. Rather than having the shareholders and the board and the employees be separate from each other, EMI keeps them working together and for the good of the company, meeting in the middle.
