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JamLol
4th November 2011, 15:16
I have a friend who is inside IR35 and therefore cannot go the Ltd Company route... his new contract starts on Monday. I thought his only option would be to go to an umbrella company. But he has had a quote from someone offering an EMI Share Options umbrella solution...

HMRC has this to say:
HM Revenue & Customs: Enterprise Management Incentives (http://www.hmrc.gov.uk/shareschemes/emi-new-guidance.htm)

"The options must be granted for commercial reasons to recruit or retain employees in a company, and not as part of an arrangement, one of the main purposes of which is to avoid tax. (Para 4 Sch 5)."

... I am worried he is taking a risk but he is very tempted as the difference in take-home pay is a few hundred quid a month! Does anybody have experience of these loan/share schemes? It seems to be well shonky...

Thanks, J