An employee ownership trust enables the company to be employee owned and is set up by, the company’s existing owners. This could be part of an exit or succession planning strategy or could be new business founders looking to start a new business that they wish to be employee owned.
The benefits of a business becoming employee-owned are:
The last few years have seen a dramatic increase in the number of businesses owned by Employee Ownership Trusts (EOTs) to the point where as at July 2023 there were over 1000employee-owned businesses in the UK.
What becomes clear very quickly in the deal process is that Employee Ownership Trusts (EOTs) are not designed as vehicles for onward sales. They work wholly on the principle that they benefit all eligible employees on the same terms, and while you are “on that bus”, you can participate in tax-free bonuses and dividends. If an employee leaves employment, then the bus simply carries on its way.
Are you thinking of making your business an EOT? Speak to a team member today to find out how best to proceed.
For more on benefits and possible tax requirements of becoming an Employee Ownership Trust (EOT), visit the BHP blog.
At BHP, we are committed to helping you through the R&D process, promising to listen, understand, and provide honest advice to determine whether you can claim R&D tax relief.
R&D Tax Claims and Patent BoxIn this day and age, what does an employer need? BHP’s employer solutions team can help meet all of your employee-related needs.
Employer SolutionsOur specialist VAT team works with you to protect your business’s profitability. We give you the best possible advice, ensuring you only pay the VAT you are legally required to pay.
VATThe Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Schemes (SEIS) are ways to help you raise funds to grow your business, fund a new business venture, or embark on R&D activity.
EIS (Enterprise Investment Scheme) and SEIS (Seed Enterprise Investment Scheme)An EMI is designed to help smaller companies recruit and retain key employees that may not have the funds to do so via salaries and bonuses. Speak to our team to see if you qualify.
Enterprise Management Incentives (EMI)If you are buying or selling a business, it can be a daunting experience and complex due to the tax implications. There is a lot to consider, and any mistakes can be very costly. Speak to our team to help.
Transaction TaxCapital allowances are a tax relief available to businesses. Do you need support with your capital allowances tax reliefs? Speak to a team member today.
Capital Allowances
General Enquiries
+44 (0) 333 123 7171
The registered office of BHP LLP (registered under number OC416373 in England and Wales) is 2 Rutland Park, Sheffield, S10 2PD