If you are an employer in the UK operating either an employment related securities scheme or a shares scheme, you will need to ensure you have a process or scheme in place that allows you to issue shares.

Understanding how employment related securities works is essential as various income tax and national insurance contributions can arise from such a scheme. 

Where employment related security includes debt, shares, derivatives, and interests in investment partnerships, it will occur when you as an employer gives employees the opportunity to acquire shares. 

For clarity, in these circumstances, employment-related securities relate to former, current and prospective employees. All of which will need to be considered in the employing or connected company. 

The most popular provided securities include:

  • Shares in a company (UK or abroad)
  • Debentures, loan stock, bonds

If you, as an employer, have a scheme that you employ in your home country and want to migrate this scheme with the expansion of your business to the UK too, we can provide full legal assistance in order for you to do so.

If an employee or director acquires shares in the company they are employed by or within the company’s group (this could be in the UK or in the home country abroad), then the company has a legal obligation to submit an annual return to the HMRC. This means that any shares acquired during this period will be counted as employment related securities.

Vidou Motee
Vidou supports clients with both day-to-day administrative tasks, such as the drafting of corporate documentation and ensuring statutory deadlines are met, as well as more complex matters such as VAT and other registrations, corporate insurance requirements, health & safety advice and other regulatory compliance matters. Being a central point of contact for all her clients, she further supports them by providing any additional assistance or advice as may be required.