4 ms·
Does anyone have any UK specific advice considering stock options? ..and how does it affect things if these are offered to a contractor and not a FT employee, i
by djm_ 13y ago
Does anyone have any UK specific advice considering stock options? ..and how does it affect things if these are offered to a contractor and not a FT employee, is that even possible?
- r4vik 13y agoI don't believe it's possible to grant them to a UK contractor in a tax-efficient manner
- walshemj 13y agoThats because you not an employee
- arethuza 13y agoFrom what I recall, the company needs to have an HMRC Approved Company Share Option Scheme [1] to allow the recipients of options to avoid income tax at the time they are granted. IANAL. These schemes are open to employees and executive directors - although it looks like there is a time requirement for directors [2] there doesn't appear to be one for employees. Maybe you could work as an employee one day a week and as a contractor for the remaining five and get the options as an employee? :-) [1] http://www.hmrc.gov.uk/manuals/essum/essum40105.htm http://www.hmrc.gov.uk/manuals/essum/essum40105.htm [2] http://www.out-law.com/en/topics/tax/share-plans/hmrc-approved-company-share-option-plans-csop/ http://www.out-law.com/en/topics/tax/share-plans/hmrc-approv... My main advice - if you think there potentially a chunk of money involved I would go and see an accountant or lawyer that knows the details of the current legislation and can give you detailed advice on what to do - I've done this in the past around options and the advice was worth every penny.
- walshemj 13y agomm I think that Revenue might see that as disguised employment and go after you under ir35 rules.