The firm has assisted a number of businesses with the Inland Revenue approved initiative, which lets companies reward and incentivise key personnel with equity shares.

Among those taking advantage of the scheme are Yorkshire Linen based in Harrogate, retailers of high quality household textiles; plant hire specialists Rodgers Group and digital agency AWA.

Alasdair Wightman, Managing Director of AWA, said: “As a creative business we rely heavily on our close-knit team to drive the business forward and to ensure we always provide the highest levels of service for our customers. This scheme is one way we can encourage and reward those individuals who we value highly and who play an integral part in our success.”

Jonathan Oxley, Managing Partner of Lee & Priestley LLP, said: “Recently we have seen increasing interest from regional businesses in the Enterprise Management Incentive Scheme and an appreciation for its benefits.

“The scheme can aid the recruitment and retention process and has been designed to be easily managed and with a particular focus on reducing ‘red tape’ to make it more appealing to small businesses. For an eligible company it is a relatively straightforward way to offer employees shares, which in turn encourages more active participation and involvement in the business.”

The Government introduced the scheme in 2000 as a way to help ‘small, higher risk’ companies which may otherwise fail to match salaries offered elsewhere. Any number of employees can be awarded the share options, provided the maximum value of options does not exceed £3 million in total.

In the 2008 budget, two major changes to the scheme were announced. The value of tax-free share options for SME staff with assets worth less than £30m is to increase, but the scheme will now be limited to businesses with less than 250 employees.

Other requirements for a company are: 

• Gross assets must be no more than £30 million.
• The company must not be operating under the control of another company.
• The company must not operate in an excluded trading sector: hotel, property, farming, nursing homes, financial services, leasing, legal or accountancy services.
• The company must employ less than 250 employees.

For an individual to be eligible they must:

• be an employee of the company working at least 25 hours a week or, if less, 75% of their working time; and
• not own more than 29% of the equity in the business

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