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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5147
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have a business. My partner has offered to sell her shares

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I have a business. My partner has offered to sell her shares to one of the people that we employ. At the moment the business is new and is losing a lot money but has very good potential and if things go to plans it will be very profitable and can grow. The best option is for me to buy the shares and own 100% of the company.
I would like to reward the employee for her loyalty as the company grows. I could possibly offer her shares in the future as the business expands but are there any other tax efficient ways to pay and reward her ?
Hello and welcome to the site. Thank you for your question.

When you wish to reward employees, you are regulated by PAYE taxation in the form of tax on salaries/bonuses or tax on benefits in kind.

I am not sure how many employees you have in the company. Making contributions into a pension scheme would be a tax efficient way of rewarding the employee as contributions into the scheme are not a benefit in kind.

Offering shares in the company is more of a long term commitment.

I hope this is helpful and other Tax Specialists are ready to help you
I thank you for accepting my answer.

Best wishes.