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EMI notification template: guidance notes

Updated 10 October 2024

An Enterprise Management Incentives (EMI) scheme is a tax-advantaged share scheme that can be operated by qualifying independent trading companies with assets of £30 million or less and less than 250 employees. EMI share options can be granted to eligible employees. 

You must submit an EMI notification within 92 days of the date of grant, if the option was granted before 6 April 2024. 

If it was granted on or after 6 April 2024, you must tell HMRC about this on or before 6 July following the end of the tax year in which the grant is made. 

If you fail to notify HMRC within these deadlines, you risk losing any tax benefits for you and your employees. 

You need to tell HMRC about your EMI scheme before you can submit an EMI notification. 

Within 7 days of registering your scheme you’ll receive a reference number. When you have it, you can tell HMRC about the grant of an EMI option. 

Tell HMRC about a grant of an EMI option 

To tell HMRC about a grant of an EMI option, you’ll need the Government Gateway user ID and password you used when you told HMRC about the EMI scheme.

If you are providing details for 30 employees or less, you can fill in the details online, you may want to take screenshots of each page and save them.

If you are providing details for more than 30 employees, you’ll also need to:

1. Download and complete the EMI notification template.

2. Upload the template — you’ll need the Government Gateway user ID and password you used when you told HMRC about the EMI scheme.

The online service will not save the details once you have submitted your notification and you will not be able to access them again.

Keep a copy of the information and the confirmation that HMRC have received your EMI notification for your records.

If you are uploading the notification template, you should save a copy of the file.

Use this worksheet to help you fill in the Enterprise Management Incentives (EMI) notification template.

Question 1: Employee first name

This is the employee’s first name.

Question 2: Employee second name

If the employee’s second name is not available or they have no second name, leave blank.

Question 3: Employee last name

This is the employee’s last name.

Question 4: National Insurance number

Enter the employee’s National Insurance number. If the National Insurance number is not known, or the employee does not have one, leave this blank. 

Question 5: Number of shares over which the option was granted

Enter the total number of shares each employee was awarded. 

Question 6: Exercise price per share

Enter the price the employee will pay per share. Enter the amount in pounds sterling up to 4 decimal places. Enter 0.00 if the employee will not be making a payment for their shares when the shares are exercised, or the exercise price is to be determined by means of a formula. 

Question 7: Actual Market Value (AMV)

AMV is the market value of a share after taking into account any restrictions or the risk of forfeiture as set out in the company’s articles of association. Restrictions on the transfer of shares as contained in the articles may be treated as restrictions for this purpose.

Question 8: Total unrestricted market value at date of grant of employee’s unexercised options including Company Share Option Plan (CSOP) options

If the employee has any unexercised CSOP options as well as their EMI options, enter the total unrestricted market value of both sets of unexercised options. There is a £250,000 limit on holding options over shares. Any options you grant the employee over this will not be qualifying options. When this happens, you must register a non tax-advantaged scheme.