Monthly Archives: June 2019

Hot Business News Today

Hunt pledges to scrap tuition fee debt for graduate entrepreneurs

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Originally written by Timothy Adler on Small Business
Jeremy Hunt has promised to wipe tuition fee debt for young entrepreneurs who launch their own business after leaving university.
As part of his pledge to “turbocharge” the British economy after Brexit, the Tory leadership hopeful said he would waive tuition fee loan repayments for any graduate who launches a start-up employing more than 10 people for five years.
Just 1pc of graduates currently start their own business – a figure which Hunt says must rapidly increase if the country is to prosper after Brexit.
Hunt’s latest tuition fee pledge comes after previous announcements to do away with business rates for 25,000 high-street retailers in five cities across Britain, lower corporation tax to 12.5pc – a 4.5 percentage point decrease on the 17pc rate planned to be in place in April 2010 — and raise the income level at which employees start paying national insurance.
Public-spending arms race
In what appears to be an increasingly reckless public-spending arms race, Tory leadership rival Boris Johnson has also pledged to raise the threshold for national insurance contributions.
Hunt said: “If we are to turbocharge our economy and take advantage of Brexit, we need to back the young entrepreneurs who take risks

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Hot Business News Today

How to set up a share options scheme for your small business

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Originally written by Timothy Adler on Small Business
Small to medium-sized business owners know the importance of incentivising and retaining key employees using a share options scheme.
They’re both tax efficient for the company and the employees who benefit.
However, there are practical problems which mean that such schemes may not work. If this happens, the company and employees may find that the tax incentives which led them to implement the scheme are not available or that the scheme did not achieve its desired outcome.
Enterprise Management Incentive
The most common scheme is the Enterprise Management Incentive (EMI) scheme. Typically, once a young business becomes established, the company will offer key employees share options under the EMI scheme. Commonly, employees are only allowed to exercise the option when the company is sold and therefore receive the value without accruing any rights as shareholders. This allows the employees to participate in the sale at no direct cost to the company or its founders.
How the EMI works
Implemented properly, the scheme allows the employees to pay capital rather than income tax on the proceeds of sale of shares after exercising the option. Employees may also able to claim entrepreneur’s relief, which further reduces the capital tax payable. The

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