In addition to requirements for companies, there are a number of conditions that must be met before employees can benefit from EMI schemes.

In order to be an eligible employee, there are three different types of condition that have to be met. These relate to:

  • employment status
  • working time
  • material interest

The legislation is covered in ITEPA 2003, Part 4, Sch 5.

Employment status

This requirement defines an eligible employee as somebody who is working either for the company running the plan or any one of its qualifying subsidiaries. ITEPA 2003, Sch 5, para 25

This means that EMI cannot be used to reward self-employed consultants, unless they become employees.

However, consultants may offer services to a number of companies in start-up mode without wishing to work exclusively for a single one.

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