Qualifying Bonus Schemes for Employee Trust-Owned Companies

Fieldfisher and Cwmpas have together produced this article looking at bonus schemes.

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.

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17/05/2024
With the original founders moving on, the ownership of the business will be transferred to Orchard’s staff from October 1st this year, when an employee owned trust will own and manage the company.
17/01/2024
An Employee Ownership Trust (EOT) is a relatively simple way for a company to become employee owned and is far simpler to manage than allocating all the shares to employees individually.