My client’s firm offers eligible employees enterprise management incentive (EMI) options. One of the conditions for favourable tax treatment is that an employee must meet the working time requirement.
For those working for the company for more than 25 hours a week that is no problem. But those working less have to be able to show that 75% or more of their working time is spent working for the company.
One of the employees who has been granted options worked two days a week and volunteered in a local charity shop on an unpaid basis for two days. Unpaid work does not count as working time so she qualifies. But she has now been asked to take on the role as the manager of the charity shop. This attracts an ‘honorarium’.
This is a fairly nominal sum (which works out as less than the NMW) and is not by any...
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