Answers
Why use EMI rather than unapproved options?, Granted at agreed market value, EMI normally means no income tax or National Insurance at grant or exercise, with gains taxed as capital. Unapproved options usually trigger PAYE and NIC at exercise.
Who qualifies?, Employees working at least 25 hours a week or 75% of their working time, holding no more than 30% of the company, in a qualifying company with gross assets under £30m and fewer than 250 full-time-equivalent employees.
What is the 92-day rule?, Each grant must be notified to HMRC within 92 days. Late notification loses the tax advantages for that grant, an administrative failure with a very real cost.
Do we need an HMRC valuation?, It is not compulsory but is standard practice, because it fixes the exercise price for tax purposes and removes argument later.
Can contractors get EMI?, No, EMI requires employment and a working time commitment. Advisers usually receive unapproved options or growth shares.
What is the 6 July deadline?, The annual employment-related securities return covering all share and option activity in the tax year, with automatic penalties for late filing.