The Government is now running an open consultation into employee share schemes, intending to simplify the set-up process for businesses.
The Treasury is running an open consultation into the save as you earn (SAYE) scheme and the share incentive plan (SIP), seeking to improve the schemes and expand their use.
So businesses will find it easier to set up their workplace scheme, the Government is assessing whether the rules are simple, clear and flexible enough, as well as offering enough flexibility.
HMRC data suggests that 25% of companies have concerns over the complexity of setting up a share scheme.
In June 2022, a total of 1,030 employee-owned businesses were running in the UK, costing the Government over £300 million a year in tax relief costs.
Victoria Atkins, financial secretary to the Treasury, said:
"Employee share schemes are an effective way to boost motivation in workforces by giving people an extra stake in what they do - and they offer a boost for business.
"Growing the economy is a priority for this Government, and one way to make this happen is by making these schemes as easy as possible to set up."
The consultation will run until 25 August 2023.
Talk to us about employee share schemes.