Employee Share Schemes for Creative Businesses: Attracting and Retaining Talent

Attracting and retaining top talent is a challenge for creative businesses. Competitive salaries alone aren’t enough—employees need to feel invested in the company’s success. Well-designed employee share schemes for creative businesses can address this by offering ownership and long-term incentives.

At Apex Accountants, we specialise in helping creative businesses implement tax-efficient share schemes that align with both your business goals and employee interests. With over 20 years of experience, we guide you through structuring options, ensuring compliance, and maximising the benefits for both employers and employees.

In this article, we will discuss the value of employee share schemes, focusing on how EMI share schemes help creative firms and how they can help drive retention, growth, and success for your creative business.

Why this matters for the creative sector

According to the latest data from the Department for Digital, Culture, Media & Sport (DCMS), the UK creative industries generated a gross value added (GVA) of £126 billion in 2022, up 12% in real terms compared with pre‑pandemic levels.
In March 2024 there were 268,080 creative industry businesses, almost 9.8% of UK registered businesses.
With many of these firms operating on tight margins and managing project‑based staffing, offering ownership stakes can be a powerful tool for retention and motivation.

What is an EMI Share Scheme for Creative Agencies?

A common and tax‑efficient option is the Enterprise Management Incentives (EMI) scheme.

Key eligibility criteria for companies:

• Gross assets of £30 million or less. 
• Fewer than 250 full‑time‑equivalent employees.
• Independent trading company (not a large holding of non‑qualifying companies).

Key criteria for employees:

• Work at least 25 hours per week, or 75% of their working time must be with the employer.

Tax features:

• No income tax or National Insurance Contributions (NICs) at grant, if the exercise price is at least the market value at grant.
• Gains on sale may be eligible for lower‑rate Capital Gains Tax, subject to conditions.

You may ask, “How do I set up an EMI Share Scheme for Creative Agencies?”

 Once you decide to grant options, you must notify HMRC within 92 days of the option grant or (for the more recent rules) by 6 July following the end of the tax year in which the option is granted. 

How EMI Share Schemes Help Creative Firms

In the creative sector, staff often move between studios or agencies. A share scheme offers several advantages:

• It gives talent a stake in the business’s success rather than just a monthly salary.
• It supports retention by setting vesting conditions (e.g., options vest after two years or after project completion).
• It appeals in environments (such as design, video games, and advertising) where creative professionals often value involvement and ownership.
• It requires no large cash outlay upfront, which suits smaller firms or start‑ups.

Case study

Apex Accountants recently supported a London-based independent film production company with 42 employees. The company struggled to retain core creative staff—particularly a senior editor and a lead VFX supervisor—due to rising competition from larger studios.

We helped the directors set up an EMI share option scheme tailored to their project-based workflow. The scheme offered share options to key team members with a three-year vesting period tied to project milestones.

Within 18 months, the company secured a £1.2 million post-production contract with an international distributor. The two team members who received share options not only stayed but also took a lead role in delivering the project under budget.

By aligning reward with company growth, the EMI scheme boosted loyalty, improved output quality, and strengthened the company’s financial position—without requiring high upfront salaries. Apex Accountants continues to manage their EMI compliance and annual reporting as part of their outsourced finance package.

What to watch out for

Even the best‑designed scheme can go wrong if the details are missed.

Key risks include:

• Vesting terms and leaver provisions must be clear. Employees in creative firms often shift roles or leave for other gigs.
• Valuation must be accurate at grant. If share options are granted below market value, the tax advantages can be lost.
• Timing of the HMRC notification matters. Missing the deadline can lead to loss of relief.
• Qualifying trade: some firms may operate in non‑qualifying activities under EMI rules.

How Apex Accountants Can Help with Employee Share Schemes for Creative Businesses

At Apex Accountants, we specialise in supporting creative businesses by designing tailored employee share schemes that drive retention and align with your long-term growth objectives. Our expert team guides you through every step of the process, from determining EMI eligibility to structuring option pools, drafting agreements, and ensuring timely notification to HMRC. We seamlessly integrate this with our tax advisory and accounting services, providing a comprehensive solution for your business needs.

Let us help you build a share scheme that attracts and retains top talent while supporting your company’s success. Contact us today to discuss how we can help your business thrive.

FAQS

Q1: Can a small design agency use an EMI scheme?
Yes. If the business meets the asset and employee thresholds, it can adopt EMI.

Q2: What happens if an employee leaves before their options vest?
The scheme must include leaver provisions. Often options are forfeited for “bad leavers” or exercised for “good leavers”.

Q3: Are share schemes only for start‑ups?
No. Many creative firms of varying size can benefit, provided they meet the eligibility criteria.

Q4: How many hours must the employee work?
They must work at least 25 hours per week or 75% of their working time with the company. 

Q5: What is the value limit for EMI options per employee?
Each employee may be granted options over shares with a market value of up to £250,000 in any three-year rolling period.