--- title: EMI option scheme - step by step guide to setting up your scheme description: How to setup your EMI options scheme on SeedLegals --- [Skip to content](https://help.seedlegals.com/en/2291832-step-by-step-guide-to-creating-an-emi-options-scheme#main-content) English Show submenu for translations ![special-case-sl-logo.png\]](https://help.seedlegals.com/hs-fs/hubfs/special-case-sl-logo.png?width=165&height=18&name=special-case-sl-logo.png) - [Blog](https://seedlegals.com/resources/?nr=1) Open main navigation Close main navigation - [Blog](https://seedlegals.com/resources/?nr=1) - English Show submenu for translations - [Home](https://seedlegals.com/) [Home](https://seedlegals.com/) How can we help? - There are no suggestions because the search field is empty. 1. [Help Centre (UK)](https://help.seedlegals.com/en?hsLang=en) 2. [Options and Option Schemes](https://help.seedlegals.com/en/options-and-option-schemes?hsLang=en) 3. [EMI Option Scheme - step by step guides on how to complete a valuation and grant options!](https://help.seedlegals.com/en/options-and-option-schemes?hsLang=en#emi-option-scheme-step-by-step-guides-on-how-to-complete-a-valuation-and-grant-options) # EMI option scheme - step by step guide to setting up your scheme ## How to setup your EMI option scheme on SeedLegals The Enterprise Management Incentive (EMI) Scheme is **UK’s tax efficient way** of granting share options to employees. Through EMI, there is no tax payable when you grant an employee a share option, no tax payable when the employee exercises the share option at the strike price agreed with HMRC, and when the underlying share is later on sold at a profit the capital gains tax is set at 18% (instead of the standard rate of capital gains tax) if the employee has held the options or shares for at least 2 years and qualifies for [Business Asset Disposal Relief.](https://www.gov.uk/business-asset-disposal-relief)  SeedLegals’ EMI option scheme is fully compliant with UK’s legislation. [Here’s](https://help.seedlegals.com/en/3515809-when-is-the-right-time-to-put-your-emi-scheme-in-place?hsLang=en) an article to help you decide **when the right time** is to set up an EMI option scheme. Please ensure your company **qualifies** for an EMI option scheme, [here](https://seedlegals.com/resources/company-qualifies-emi-share-option-scheme/) is an interesting article you might want to check out. This guide will walk you through the full process of setting up your EMI option scheme on SeedLegals. 1. Create an option pool 2. Input your EMI valuation details 3. Set up your EMI option scheme 4. Register your EMI option scheme with HMRC 5. Grant options 6. Notify HMRC of your option grants 7. Joint NIC Election ### **1. Create an option pool** This should already be completed by this stage, but if not, please follow along with this guide: [How to create an option pool](https://help.seedlegals.com/en/4479668-how-to-create-an-option-pool?hsLang=en) ### **2. Input your EMI valuation details** You should have a valid EMI valuation from HMRC, our step-by-step guide to completing your EMI valuation application on SeedLegals can be found [here.](https://help.seedlegals.com/en/4185492-step-by-step-guide-to-your-emi-valuation?hsLang=en) Input the approved AMV and UMV from your EMI valuation approval letter to your EMI valuation.  ![](https://help.seedlegals.com/hs-fs/hubfs/image-png-Aug-28-2026-08-28-43-4901-AM.png?width=670&height=308&name=image-png-Aug-28-2026-08-28-43-4901-AM.png) That said, you can set up an EMI scheme before HMRC approves your EMI valuation, but you must have that approval in hand before officially granting the options. ### **3. Set up your EMI option scheme** We have a video tutorial taking you through the next steps following receipt of an approved EMI valuation from HMRC [here](https://www.loom.com/share/cc75b74c83264097aa5bc85f0400a70c?sid=96f48a97-7186-4811-923f-883f65578f99).  You can set up your EMI scheme from the **Share Options** window on the left-hand side of your SeedLegals dashboard and then click '+New scheme'. You'll then need to click 'Create' under the EMI scheme and select the share class over which you want to grant EMI options. ![](https://help.seedlegals.com/hs-fs/hubfs/image-png-Sep-10-2026-03-21-37-9224-PM.png?width=670&height=307&name=image-png-Sep-10-2026-03-21-37-9224-PM.png) Then, you can choose the terms of your scheme relating to vesting and exercise. These rules will be the default rules for each team member added to the scheme, however, if you wish to, you can change the **vesting** rules when granting to specific team members. You may want to check out our guide with the most commonly selected terms [here.](https://help.seedlegals.com/en/guide-to-option-scheme-rules?hsLang=en)Once you have selected the terms that you want, you'll need to click on 'Create' the EMI option scheme rules. ![](https://help.seedlegals.com/hs-fs/hubfs/image-png-Sep-10-2026-03-23-41-6342-PM.png?width=670&height=310&name=image-png-Sep-10-2026-03-23-41-6342-PM.png) You are then ready for the company to adopt the option scheme. Please hold a Board meeting and then enter the details of the meeting under the Board Resolution below. Then the chairperson will sign the **Board Resolution**.  ### **4. Register your EMI option scheme with HMRC** Please remember to register your EMI option scheme with HMRC, our guide [here](https://help.seedlegals.com/en/3482274-how-to-register-your-emi-option-scheme-with-hmrc?hsLang=en) will take you through just how to do so. Once done, please input the date of your registration into the EMI scheme workflow. ![](https://help.seedlegals.com/hs-fs/hubfs/image-png-Sep-10-2026-03-30-14-9063-PM.png?width=1622&height=752&name=image-png-Sep-10-2026-03-30-14-9063-PM.png) If you have multiple EMI option schemes you only need to register one scheme.  ### **5. Grant options** You can now set up your option grants for your employees using our [guide here](https://cmdfk04.na1.hs-sales-engage.com/Ctc/GB+23284/cmdFk04/JjT4YGXpW50kH_H6lZ3pVW7Xy_KQ81mXwtW28qdVg4NTjGrW5z92M442yM29W1yw-Yd1Jk6zZW6dvwHy3M85j8W7Q6j892ncYs6VpkgG737TpwrM2fYB-mJMQyW53fd2L5MtXl-W5cLQ9334DRgzW1DCPhT40gG_WW2cFDmC3x_tMHW6nXMzX1gy_rYW5l3KD35FnxhCW6_WL2j2bNqm0W552NHm8ZBgVrW3PX_Bz797qHFW19zbhl3y67x0W3rPzM_17MWm9VJkVmn14zY-LN5GnTjx43lNsW8SWTbk8j8fmyW1mRNvH917p04W1w2j5T1F2RY-W2tVzMd98YvShW8QFnZf3WfvK8N3kMf6lDQnxjW29VZFQ4SJJY5W3bM8mY35DpWnW95CrL25Kmd9sV5qZxv8F5PvwW96_DN-6VPX-2d1pd6404). You may find our [short Loom video guide here](https://www.loom.com/share/1ff0cd5551c643d0b0bc78bc018d3dca)useful as well. Please remember to hit 'Approve option grant' when you are done! You will then be able to issue **option certificates** to your option holders. To do so, head back to the** Share Options** window and click on the **Option Certificates **tab. ![](https://help.seedlegals.com/hs-fs/hubfs/image-png-Sep-08-2026-08-29-24-6872-AM.png?width=670&height=307&name=image-png-Sep-08-2026-08-29-24-6872-AM.png) You'll then see the option certificates for your option holders. Hit **Sign All** for all of your Option Certificates, and 'Actions: Email Certificates' to send them out to your options holders. ![](https://help.seedlegals.com/hs-fs/hubfs/image-png-Sep-09-2026-03-48-17-9338-PM.png?width=670&height=308&name=image-png-Sep-09-2026-03-48-17-9338-PM.png) This short [video](https://www.loom.com/share/9e8875f7f5e44a57a00b67c965357b31?sid=e43e9a0f-601b-4bf2-bbb8-bed0979539a8) takes you through option certificates on SeedLegals.  ### **6. Notify HMRC of your option grants** Any grants made on or after 6 April 2024 only need to be notified to HMRC once a year along with your EMI annual return by the 6th of July every year. Our guide [here](https://help.seedlegals.com/en/3487532-how-to-notify-hmrc-about-the-granting-of-an-emi-option?hsLang=en) will take you through just how to do so.  **However, we strongly urge companies to report regularly, such as once the options are granted. Instead of waiting until the deadline to make the notification, to avoid the risk of missing the filing.** ### **7. Joint NIC Election** This needs to be done before the **exercise** of any options, but you may wish to do so earlier so that you don't have to worry about it in the future.  ![](https://help.seedlegals.com/hs-fs/hubfs/image-png-Aug-28-2026-08-56-01-6672-AM.png?width=670&height=307&name=image-png-Aug-28-2026-08-56-01-6672-AM.png) If you’re transferring NIC liability to the option holder, see this [guide](https://help.seedlegals.com/en/joint-nic-election-step-by-step-guide?hsLang=en). ### **8. The team will complete a final review of your scheme** Please reach out to your dedicated Share Options Associate so they can help review your EMI scheme and grants set up to ensure everything is in order.  If you have successfully followed all of these steps then **congratulations**, you will have completed your EMI option scheme and EMI grants. Which you can view at any time from the **Share Options** window on your dashboard. 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