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Bonus, dividend or profit-share?

Kernow_Pasty · 2014-11-06 16:53:20

Hi, I have been tasked with implementing a new 'bonus' scheme for a handful of key employees in an SME, some standard and some higher rate tax payers. My only steer is to base it on a set percentage of net profit. Can anyone recommend what form such a scheme should take to be the most tax efficient to both employer and…

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cazziebo Posts: 3,209 Forumite

11 November 2014 at 12:09PM

[QUOTE=

I guess there is no way to make shares automatically forfeit on resignation/ dismissal/ retirement without paying the owner something?[/QUOTE]

yes - can be written in to share agreement. Some share plans will automatically forfeit shares if the person is a "bad" leaver (dismissal, , resignation) but not if a good leaver (redundancy, retirement).

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Bonus, dividend or profit-share?

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