The Treasury’s controversial new employment status is set to go in to operation at the start of next month.
The employee-shareholder arrangement will see staff members give up a number of workers’ rights from 1 September in exchange for at least £2,000 of tax-friendly shares in their employer’s company.
Finance Act 2013 provides reliefs for the shares, meaning income tax and National Insurance will usually not be chargeable on the first £2,000 of share value received, and there will usually be a capital gains tax exemption for up to £50,000 of shares.
Law Society warns that new contract will create too much complexity