 Improve employee share schemes to boost the economy says PKF
18 November 2009: Recent independent research* coordinated by the National Endowment for Science, Technology and the Arts suggests that just 6% of fast growing UK companies create over 50% of all new jobs. Supporting such growing businesses through improved share incentive schemes is a cheap way for the Chancellor to boost the economy.
 |
 | Philip Fisher, Employment Tax and Rewards partner at PKF and author of ‘Employee Share Schemes’ says: “If Alistair Darling wants to announce some good news in next month’s Pre-Budget Report, making employee share schemes more attractive is a great place to start. Not only would such a move help growing businesses motivate staff, the long term nature of such incentives sits well with the loudly proclaimed Government distaste for the so called ‘bonus culture’.” |
If the individual employee limit for Enterprise Management Incentives (EMI) had increased in line with executive wage inflation, it would now be at least £250,000 rather than £120,000.
Fisher says: “To help companies motivate and keep their best people, Chancellor Darling should announce a £250,000 limit next month. This will enable smaller companies to recruit and retain key staff during the economic crisis and, in doing so, help the country back to the good times.”
– ends –
For further information or to speak to Robert, please contact:
Philip Fisher, Tax Partner, 020 7065 0478, philip.fisher@uk.pkf.com
Jane Murray, PR Executive, 020 7065 0135, jane.murray@uk.pkf.com
Notes to Editors:
* See http://www.nesta.org.uk/assets/Uploads/pdf/Research-Report/Report-Summary-Vital-6-per-cent-v13.pdf
Notes to Editors:
- PKF is a leading firm of accountants and business advisers with more than 1,500 partners and staff operating in 23 offices in the UK mainland firm, a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk.
- PKF (UK) LLP also offers financial services through its FSA authorised company, PKF Financial Planning Limited. PKF (Isle of Man) LLC is a limited liability company registered in the Isle of Man. PKF (Guernsey) Limited is incorporated in Guernsey.
- PKF (UK) LLP is a member firm of the PKF International Limited network of legally independent firms. The PKF International Limited network has around 15,000 people operating in 120 countries around the world.
- Enterprise Management Incentives (EMI) is a share option scheme for smaller companies approved by HM Revenue and Customs. It offers significant advantages to employees who can currently receive options worth up to £120,000 each.
|