Why offer an employee share scheme? HAZLEWOODS HEALTHCARE TEAM
Retaining top talent in the business is crucial for its future success and growth. Getting the remuneration package right is more important than ever, given the challenging recruitment environment being faced by the care sector. Employee share schemes for those key individuals can help improve loyalty, motivation and a sense of belonging more so than just salary, bonus and benefits.
2022
HMRC approved and unapproved schemes. Within these categories many different approaches are possible. It is a complex area, and the available and most appropriate schemes will depend on the objectives of the business, the needs of your employees and the healthcare sector in which you operate. We can help to advise you on the right one for your business tailored to your specific circumstances.
How can we help you? Hazlewoods Healthcare team of share scheme specialists will work closely with you to:
Spotlight on: Growth shares Growth shares allow employees to participate in the future growth of the business. The individuals are awarded the shares from the outset but will only receive a return on disposal if a certain financial hurdle is reached. Care operators would have the flexibility to set the participation hurdle over which the employee could participate. Such schemes are proven to help improve the performance of the business by giving employees a stake in the business and aligning both shareholder and employee interests. Generally, they have the same rights as ordinary shares such as voting and dividend rights. Growth shares are more commonly used for start-ups or private equity backed businesses with significant debt, such that the initial value of the shares is relatively low and has prospects for growth. From a tax perspective, careful consideration of the value of the shares at the outset should secure capital gains tax treatment for the shareholders on disposal of the shares.
What other schemes are available? There are many different types of employee share schemes including share options, share awards,
▪ Advise on the most suitable plan for your business ▪ Design the share scheme and value the shares ▪ Obtain agreement from HMRC on the share valuation (if applicable) ▪ Liaise directly with your solicitors responsible for producing the relevant legal documentation and provide specialist governance support to them. ▪ Register the scheme with HMRC and assist with on-going reporting obligations (e.g. annual returns) For further information or if you would like to explore what options there are for your business, please get in touch.
CARLY WILD Associate Director carly.wild@hazlewoods.co.uk
MEGAN LEWIS-BOURKE Associate Director megan.lewis-bourke@hazlewoods.co.uk
01242 237661 @Hazlewoods www.hazlewoods.co.uk We strongly recommend you take professional advice before making decisions on matters discussed here. No responsibility for any loss to any person acting as a result of the material can be accepted by us. Hazlewoods LLP is a Limited Liability Partnership registered in England and Wales with number OC311817. Registered office: Staverton Court, Staverton, Cheltenham, Glos, GL51 0UX. A list of LLP partners is available for inspection at each office. Hazlewoods LLP is registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England & Wales.