About The RM2 Partnership Ltd Presentation 1212010


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Increased income tax and NIC mean businesses should be looking at equity planning as a way to conserve cash, reduce tax and recruit, retain and motivate staff. RM2 can provide the specialist advice you need.

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  • Founders sell shares to trust Is it tax efficient to sell to trust? s 703 – we will come back to it Trust offers shares to employees tax efficient with SIP, EMI etc tax relief on loans to invest in close companies employees get tax relief on loans used to buy shares in employee controlled companies Corp tax relief appropriation under SIP, exercise of options, Overall a good tax result helps to oil the wheels It is not just about tax – its about personalities, culture and communication
  • the problem of value – will return to this advantages of this arrangement Not involving a third party – giving business information to potential competitors Minimum of disruption for customers Potentially good publicity importance of having a timetable
  • About The RM2 Partnership Ltd Presentation 1212010

    1. 1. opportunity growth profit RM2 Presentation
    2. 2. As we progress in 2010 – what are your concerns or opportunities? <ul><li>Retaining your key staff - your “profit makers” </li></ul><ul><li>Cash Flow concerns </li></ul><ul><li>Growing your organisation </li></ul><ul><li>Your own exit strategy or succession plan </li></ul><ul><li>Overall tax efficiency </li></ul>
    3. 3. What can RM2 offer? <ul><li>attract and retain staff </li></ul><ul><li>provide effective incentives </li></ul><ul><li>foster team work and commitment </li></ul><ul><li>conserve cash </li></ul><ul><li>save tax </li></ul><ul><li>succession plans / exit strategies </li></ul>Ways to :
    4. 4. Why RM2? <ul><li>design, implement, administer </li></ul><ul><li>184 corporate clients, 141 trusts </li></ul><ul><li>multidisciplinary, holistic </li></ul><ul><li>quality driven </li></ul>the share plan specialists BenchmarQ gold customer service award ISO 9001 accredited Investor in People
    5. 5. the need……… <ul><li>tough times and tough measures </li></ul><ul><li>control of cash flow </li></ul><ul><li>share based rewards </li></ul><ul><li>reduced NICs and tax implications </li></ul><ul><li>employees motivated to stay for the upturn </li></ul><ul><li>key managers retained </li></ul>
    6. 6. the steps…… objectives clarity commitment focus – the employees
    7. 7. implementation simplicity of design one adviser integrated design and administration
    8. 8. communication mutuality staff access to consultants fun
    9. 9. What can we use? <ul><li>gift </li></ul><ul><ul><li>Share Incentive Plan (SIP) </li></ul></ul><ul><ul><li>Discretionary trust (EBT/LTIP) </li></ul></ul><ul><li>option </li></ul><ul><ul><li>Enterprise Management Incentive (EMI) </li></ul></ul><ul><ul><li>Company Share Option Plan (CSOP) </li></ul></ul><ul><ul><li>Unapproved Share Option Plan (USOP) </li></ul></ul><ul><li>purchase </li></ul><ul><ul><li>SAYE Share Option Scheme (SAYE) </li></ul></ul><ul><ul><li>SIP purchase and matching </li></ul></ul><ul><ul><li>Joint, Flowering or Deferred Purchase </li></ul></ul>
    10. 10. Succession Planning a typical exit scenario <ul><li>founders sell shares to trust </li></ul><ul><ul><ul><li>tax-efficiency for founders? </li></ul></ul></ul><ul><li>trust offers shares or options to employees </li></ul><ul><li>tax-efficiency for employees? </li></ul><ul><li>corp. tax relief on appropriation/ exercise </li></ul><ul><li>tax-efficiency for company? </li></ul>
    11. 11. trust company founders cash shares cash shares employees
    12. 12. …… ..the outcome!! <ul><li>Key players are in line with shareholders…..aspirations are shared </li></ul><ul><li>Profit centre personnel enjoy shares in their Company </li></ul><ul><li>Support staff are part of their Company </li></ul><ul><li>Loyalty and effort rewarded </li></ul><ul><li>Staff motivated by Company development and success </li></ul><ul><li>Opportunities for MBO MBI </li></ul>
    13. 13. …… .the tax savings <ul><li>For most of the HMRC approved and registered plans: </li></ul><ul><li>no income tax 22 – 40 or even 50 per cent. </li></ul><ul><li>no employer NICs – 12.8 per cent. </li></ul><ul><li>no employee NICs – 10 or 1 per cent. </li></ul><ul><li>corporation tax relief </li></ul><ul><li>ONLY Capital Gains at 18 or 28 per cent. or lower with available reliefs. </li></ul>
    14. 14. … ..the important steps <ul><li>Discuss objectives </li></ul><ul><li>Decide the most effective arrangement </li></ul><ul><li>Summary </li></ul><ul><li>Review </li></ul><ul><li>Agree plans and Terms </li></ul><ul><li>Review Articles </li></ul><ul><li>Valuation </li></ul><ul><li>The plan and employee documents </li></ul><ul><li>The roll-out </li></ul><ul><li>Administration </li></ul>
    15. 15. … considerations tax law company law employment law valuation accounting standards HR considerations trust law and administration
    16. 16. process objectives fact-find design review communicate implement administer adviser meeting, internal review adviser meeting adviser mtg, remuneration ctte, Board co resolutions, IR approval/registration employee presentations, press, intranet draft documentation, terms, pricing monthly systems, helpline, communication
    17. 17. Client Base <ul><li>More than 180 clients – and growing rapidly </li></ul><ul><li>Variety of industry sectors </li></ul><ul><li>Public and private companies </li></ul><ul><li>Competitive fee scales </li></ul><ul><li>Preferred advisors for organisations such as Intellect, the FDC and the IIB . </li></ul>
    18. 18. RM2 Details Fact Sheets Available Employee Share Schemes – A Guide for Directors - the 2008/09 Edition Website: www.rm2.co.uk Email Helpline – [email_address] Telephone Helpline – 0208 949 5522
    19. 19. Share and share options <ul><li>the possibility of having your cake and eating it too!! </li></ul>
    20. 20. <ul><li>Questions? </li></ul>
    21. 21. The RM2 Partnership the share scheme specialists BenchmarQ gold customer service award ISO 9001 accredited Investor in People