A complete step by step guide to help you with all the steps needed to grant EMI options to your employees
Great! You have received a response from HMRC approving your valuation. Here are your next steps:
1. Adopt your Option Scheme and register it with HMRC!
a) Finalise your Option Scheme Rules. To access the Option Scheme Rules and Board Resolution please click ‘View scheme’ under the relevant scheme from your homepage.
Then click 'Setup scheme rules' and the pencil icon under 'Option scheme rules'. Go through all the terms in your scheme to check you are happy with them.
b) Hold a Board meeting to approve the scheme and HMRC's valuation.
After the meeting, record it with the Board Resolution which you'll find under 'Adopt scheme rules'. Add in the date your valuation was approved, then record the meeting by creating the Board Resolution. The chairman should sign it.
c) Register your EMI Scheme with HMRC via its online service. Please follow these steps to do so. You must register your scheme with HMRC before you notify HMRC of any options granted to employees, so it's good to get it done as soon as possible.
d) Mark the valuation as approved on the platform, with the date it was approved. This can be done if you scroll right to the bottom of your valuation on the SeedLegals platform.
2. Grant options to your employees
You must grant EMI options within 120 days* of the valuation being approved.
Please see this guide on creating an options grant on SeedLegals or watch this video.
You can grant options right from the Option Scheme homepage.
*Please note that due to Coronavirus, any EMI Valuations that expire on or after 1 March 2020, and any new EMI Valuations created on or after 1 March 2020 can automatically be treated as having been extended by 30 days, so that they are valid for a total of 120 days. ( See HMRC Employment Related Securities Bulletin 35 (June 2020)).
This will be valid up until the 1 December 2022. Any EMI valuation agreement letters issued by HMRC on or after that date will be valid for 90 days only.
3. Notify HMRC of these option grants
Within 92 days of granting these options, you must notify HMRC of these option grants. See our guide How to notify HMRC about the granting of an EMI Option.
4. Ask us for a Final Review of your scheme and grants!
Once you've completed all these steps, reach out to us through the chat feature for a Final Review of your scheme and grants. You can access the chat by clicking the icon in the bottom right corner on the platform and our website.
If you have any urgent queries, the chat is also the best place to get hold of us!
For more articles please view our help centre page EMI Option Scheme - step by step guides on how to complete a valuation and grant options!
Other articles you might be interested in include:
Step by step guide to creating an EMI Option Scheme