The chartered accountants at Scholes recently used their expertise to boost financial situations of employees in the renewable energy sector.
When a client approached the experts at Scholes with a highly complex issue, they rose to the challenge.
The client wanted to issue their employees with shares in the company that were directly tied to growth in a specific part of the business, but they didn’t want to exclude sub-contractors and non-regular employees from the rewards.
As you can imagine, providing a share scheme to such a specific and complex demographic of the workforce was going to be a financial (and tax) nightmare.
Scholes know that flexibility and efficiency are always paramount in these situations, so they got to work right away and came up with a solution.
Scholes’ experts recommended issuing ‘growth shares’ which reduce tax implications and are tied to the growth of the business from the day of issuance – rather than the original price of the company shares.
Whilst they can be somewhat complicated to set up, growth shares have the added benefit of enabling sub-contractors and other non-employees to receive the same benefits as workers.
Despite requiring a lot of difficult accountancy work, Scholes ensured that the client’s employees received the fairest solution possible.
“It was a beautiful bit of accounting performed by our team and demonstrated fantastic critical thinking to reach the desired result,” Director, Ivan Houston said.
“We love working on complex issues like this one. Solving difficult problems gives us great confidence dealing in the everyday accountancy challenges we come up against,” he added.
Scholes is an accountancy firm based in Scotland that is passionate about seeing the renewable energy sector grow.
“It is great to think that Scholes has contributed towards the Scottish Government’s goal of becoming a net zero greenhouse gas emitting nation by 2045,” said Ivan.
To learn how Scholes’ accountants could help your business with complicated tax issues, please get in touch.