EMI implementation timetable

Assessment of (a) whether the company qualifies to grant EMI options and (b) proposed participating employee(s) EMI qualification.

If required (depending on outcome of action (1(a)) above), preparation of EMI scheme advance assurance application to HMRC in relation to whether the company qualifies to grant EMI options.  

Preparation and circulation of a Term Sheet (or other form of design questionnaire) outlining the proposed design of the (a) EMI plan (the “Plan”), (b) the initial options to be granted under the Plan (c) the option share rights and (d) other points for discussion.

Discuss and agree contents of Term Sheet and circulate final agreed Term Sheet.

If required, submission of EMI advance assurance application to HMRC.

Draft Articles of Association to reflect agreed share rights.

Preparation and review of EMI valuation submission to HMRC to agree the basis of valuation for granting EMI options. 

Preparation of main legal documents in relation to the Plan and the initial grant of options:

• Plan Rules
• Option Agreements / Certificates
• Letters of Grant
• Notices of Exercise
• Board minutes to adopt Plan and grant the initial options
• Deed of Grant

HMRC approval of valuation.

The company holds a board meeting to adopt the Plan and grant the initial options. Deed of Grant signed.

Employee documents are signed and executed. Option agreements dated.

Fully executed copy of the EMI option agreement sent to the employee within seven days of the date the employee signing the option agreement. 

Plan registered online with HMRC using the employment-related securities (ERS) online service. 

The company (with us advising)

EMI option grants notified to HMRC through the ERS online service within 92 days of their date of grant. 

The company (with us advising)

Option activity reported to HMRC through the ERS online service.  Deadline of 6 July following each tax year.