Step Responsible parties
Week one  

Assessment of (a) whether the company qualifies to grant EMI options and (b) proposed participating employee(s) EMI qualification.

Us / the company

If required (depending on outcome of action (1(a)) above), preparation of EMI advance assurance application to HMRC in relation to whether the company qualifies to grant EMI options.  

Us / the company

Preparation and circulation of a Term Sheet (or other form of design questionnaire) outlining the proposed design of the (a) EMI plan (the “Plan”), (b) the initial options to be granted under the Plan (c) the option share rights and (d) other points for discussion.

Us
   
Week two  

Discuss and agree contents of Term Sheet and circulate final agreed Term Sheet.

Us / the company

If required, submission of EMI advance assurance application to HMRC.

Us

Draft Articles of Association to reflect agreed share rights.

Us
   
Week three  

Preparation and review of EMI valuation submission to HMRC to agree the basis of valuation for granting EMI options. 

Share valuer / Us / the company
Submission of valuation proposal to HMRC with draft Plan documentation. Share valuer 
   
Week four and five  

Preparation of main legal documents in relation to the Plan and the initial grant of options:

  • Plan Rules
  • Option Agreements / Certificates
  • Letters of Grant
  • Notices of Exercise
  • Board minutes to adopt Plan and grant the initial options
  • Deed of Grant
Us
   
Week six  

HMRC approval of valuation.

HMRC / share valuer

The company holds a board meeting to adopt the Plan and grant the initial options. Deed of Grant signed.

The company

Employee documents are signed and executed. Option agreements dated.

Employees / The company

Fully executed copy of the EMI option agreement sent to the employee within seven days of the date the employee signing the option agreement. 

The company

Plan registered online with HMRC using the employment-related securities (ERS) online service. 

The company (with us advising)

EMI option grants notified to HMRC through the ERS online service within 92 days of their date of grant. 

The company (with us advising)

   
Post completion matters  

Option activity reported to HMRC through the ERS online service.  Deadline of 6 July following each tax year. 

The company (with us advising)