HMRC has publicised the fact that a new employment status – that of the employee shareholder – took effect from 1 September 2013.
HMRC has publicised the fact that a new employment status – that of the employee shareholder – took effect from 1 September 2013.
Employee shareholders have reduced employment rights to employees; for example, employee shareholders will not have rights to statutory redundancy pay, unfair dismissal, and certain other statutory rights regarding time off to train, unless their employer chooses to include those rights in their contract. Employee shareholders are awarded shares worth at least £2,000 in their employer or a parent company; there is no set upper limit for the valuation of the shares awarded.
There is no requirement for businesses wishing to offer an employee shareholder contract to obtain HMRC approval or agreement.
HMRC has also published guidance on the new employee shareholder employment status on its website, as well as publishing separate guidance on the income tax rules and exemptions applying to awards of shares under the new employee shareholder status, and separate guidance on the capital gains tax exemption applying to awards of shares under the new employee shareholder status.
HMRC has publicised the fact that a new employment status – that of the employee shareholder – took effect from 1 September 2013.
HMRC has publicised the fact that a new employment status – that of the employee shareholder – took effect from 1 September 2013.
Employee shareholders have reduced employment rights to employees; for example, employee shareholders will not have rights to statutory redundancy pay, unfair dismissal, and certain other statutory rights regarding time off to train, unless their employer chooses to include those rights in their contract. Employee shareholders are awarded shares worth at least £2,000 in their employer or a parent company; there is no set upper limit for the valuation of the shares awarded.
There is no requirement for businesses wishing to offer an employee shareholder contract to obtain HMRC approval or agreement.
HMRC has also published guidance on the new employee shareholder employment status on its website, as well as publishing separate guidance on the income tax rules and exemptions applying to awards of shares under the new employee shareholder status, and separate guidance on the capital gains tax exemption applying to awards of shares under the new employee shareholder status.
