Employee Ownership Trust

[Ferrylooper]

I work for a limited company but it seems like in the future it will become EOT, going for the indirect option. I was wondering if anyone has experience regarding this. What were the implications/ benefits for employees, what has changed for you? I'm not sure if it would mean a change to my contract or position within company. Would appreciate any thoughts.

This is very interesting. We have considered the approach of giving our employees an increasing share of our business as part of their salary packages to improve employee engagement and retention and allow the employees to take over and run the business when we retire but we were warned off this by our accountant as it was seen as a tax dodge by HMRC - so I have just read that it is something the Gov are actively encourages and so are providing tax incentives to encourage companies to make the transition. Thank you for the post - it's got me thinking again.
www.ftadviser.com/companies/2020/10/06/how-employee-ownership-trusts-work/

It was very much seen as a way protecting the company from a buyout and running it the way us employees want. And yes there’s tax advantages too which our Financial Director got really excited about. The only element I’m unsure about is whether there’s any implications if any for the current employees.

In what sense implications for current employees? What are your concerns? - do you mean your liability? - that would have to be limited and covered with the appropriate insurance.