BIM44015 | Specific deductions: employee share schemes: summary of tax and NICs treatment
From HM Revenue & Customs · Business Income Manual
This table summarises the key features of the different kinds of approved and unapproved schemes, and the tax and NICs treatment for employers and employees.
| Scheme | SIP | EMI | CSOP | SAYE | Unapproved |
|---|---|---|---|---|---|
| Options or awards? | Awards | Options | Options | Options | Options or awards |
| Must a trust be used? | Yes | Not essential | Not essential | Not essential | Not essential |
| Income tax advantages for employees? | Yes | Yes | Yes | Yes | No |
| NICs advantages for employees and employers? | Yes | Yes | Yes | Yes | No |
| Statutory tax deductions for employers’ setting up costs? | Yes | No - general trade profits principles apply | Yes | Yes | No - general trade profits principles apply |
| Statutory deductions for the provision of shares? | Yes | Yes | Yes | Yes | Only if ‘qualifying shares’, - otherwise general trade profits principles apply (including the employee benefit trust rules) |