An Option to reduce your clients’ stress

I’ll always be here for you dad!

There is plenty that small business owners can, and do, worry about. If your client base includes growing SMEs, you will have heard a few of these common grievances. Two of the grievances mentioned strike home with the SMEs that I speak with – finding and retaining reliable staff and ensuring steady cash flow.


I believe it’s not worth worrying about something you can’t control. You just need to take control over those things you can. While it may not always be that simple, it’s a useful mindset for approaching issues when they arise.

Cash flow and staffing are two issues that business owners can control. Importantly, you can increase your value proposition by helping your clients find solutions to these issues.

One solution you can raise with your clients is Employee Share Schemes (ESSs), also known as Employee Share Option Plans (ESOPs). An ESS involves an employer providing discounted Shares in their company to an employee, or providing Options allowing the employee to acquire Shares in the future.

By offering Shares or Options in their business to valued staff members in lieu of cash rewards or bonuses, employers can:

  1. Keep these much needed funds in their businesses, helping cash flow; and
  2. Encourage valued employees not only to stay with the company, but to also help grow the business.

In July 2015, new methods for taxing employees who participate in ESSs were enacted; making ESSs a very attractive opportunity for both employers and employees. We’ve created an ESS fact sheet, accessible here, which outlines some of the benefits of ESSs and the tax discounts available. You may be able to use this as a conversation starter towards helping relieve some of your clients’ stress.

Back to Articles
Redchip

Recent Articles

Antivirus, hacker protection.
Defending against the indefensible

You’d imagine that a law firm with as strong an IP pedigree as Redchip would have no problems defending itself from people preying on the success of our business. Sadly, even we aren’t immune to rip offs and poaching expeditions.

Read more
Blue and orange sunset sky
Heaven can wait

Recently I heard someone say: “everyone wants to go to heaven, but no one wants to die”. Our mortality is such a taboo topic that it impacts the way in which many people approach their Wills and Estate Planning.

Read more
girl plays superhero
From shark bait to superheroes

Three life lessons for start-ups. There’s never been more buzz surrounding the start-up community, but all this excitement doesn’t come without its fair share of hurdles and legal pitfalls.

Read more