There is no doubt that one of many reasons for the success of the Employee Ownership Trust (EOT) model in Wales and the UK as a whole is the Qualifying Bonus Scheme which can  provide employees with a annual tax free bonus of up to £3,600.

A company which is majority owned by its employees through an EOT will devise a scheme which meets the requirements of HMRC. In our experience whilst the basic principles are clear there can be uncertainties and potential complications with such schemes. To provide added clarification Fieldfisher and Cwmpas have together produced this article which addresses the basics and some of the possible complications.

We hope this will assist companies seeking guidance.