Specific deductions: employee share schemes: summary of tax and NICs treatment
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.
|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 employers’ contributions to trusts?||Yes||Yes||Yes||Yes||Only if ‘qualifying shares’, - otherwise general trade profits principles apply (including the employee benefit trust rules)|