It comes as recent research shows that wages for the majority of workers in the UK are falling in real terms against inflation, meaning that many are now worse off in real terms.
Enterprise management incentive (EMI) schemes offer an alternative, allowing businesses to remunerate staff without increasing wages or placing additional costs on the business.
Using their expertise in this area, TWP are meeting and speaking with businesses to explore how they can help them to establish and manage such schemes, including gaining advanced assurance from HM Revenue & Customs.
Speaking about the advice being offered, TWP’s Tax Manager June Graham said: “Businesses of all sizes are looking at ways of rewarding their staff for the hard work they do, but with other financial pressures and the current levels of uncertainty many simply can’t justify increasing salaries.
“EMI schemes therefore offer an excellent alternative and are, with the right help, fairly simple to create and manage.”
EMI schemes offer a number of distinct advantages over traditional forms of pay, including a significant reduction in like-for-like tax liabilities for both employee and employer, when compared to a traditional wage.
However, they do require the parent company to effectively offer a stake in the business to employees as share options, which may not suit every owner’s aspirations.
“We are seeing a growing interest in these schemes from business of all sizes, so I would encourage firms to come speak to us about how we can help them make the most of the opportunities on offer,” said June.
If you would to know more about how TWP can help your business to explore EMI schemes, please call +44 (0) 1932 704700 or email firstname.lastname@example.org