NSW Becoming part of an Employee Share Scheme in a UK company - as a NSW sole trader

[royalwithcheese]

Hi there,

I am working for a UK-based company as a self-employed sole trader living in NSW.

The UK-based company is putting in place a Share Option Plan that they want me to be a part of. For the UK resident that work for the company, this will be constructed as an Enterprise Management Incentives (EMI) Scheme, which I understand provides a tax-efficient way of awarding shares to qualifying participants at a flat 20% tax rate.

I'm doing the vast majority of my work for this company and they want to set me up in the Incentives Scheme. However, we are facing the obvious obstacles of me being an Australian tax resident and a registered sole trader, and therefore I won't be able to join this exact scheme.

In light of this, what do the experts suggest, when it comes to options on how to best accommodate me in the scheme? Or is there a similar scheme that should be set up separately, or are there ways of awarding similar benefits in other ways, in accordance with the Australian law and tax system?

Thought I'd reach out here to see if anyone has some initial advice.

Thanks in advance - much appreciated.

 

[Tim W]

I'm not an expert, but I can spot a cash strapped business when I see one.
Maybe just bill them - in money, and get paid - in money.

You're a contractor? So, (in theory/ on paper) not an employee.
On that basis, I'm not even certain that you're eligible.

 

[royalwithcheese]

Thanks, Tim, appreciate the response.
They aren't cash-strapped, I have some sight of the financials. But rather they want to implement the scheme to reward high-performing, long-standing employees and project team members (that would include me, even though not an official employee) and incentivise high future performance and a growth mindset.

Aware I'm in a situation where I am not an official employee, but we're basically trying to find a way for me to participate in one form or another.

 

[Tim W]

I'm not an expert on UK tax law.
So in the end, it's a question for their lawyers in the UK.
From an Australian perspective, you can agree with your customer
to be paid in pretty much any combination of ordinary money and conditionally-more-money that you like.
You and they can certainly agree to pay you in, say, some amount of money, plus share options, part paid shares, or fully paid shares.
This is a common expat deal - for employees.

But it's not a DIY.
The arithmetic, the currency exchange arrangements, the fluctuation/ value guarantee arrangements, the share transfer arrangements,
any liability under UK law that attaches to the shares, the cross-jurisdictional tax questions, and a load of other things
will all need to be worked out in advance, and built into your principal contract in the bit that sets out how you get paid.

 

[Rod]

I agree with @Tim W , UK company, UK law. In Australia you would be working for sweat equity, I do not know what the equivalent is in the UK.

Whatever you do, get the agreement in place soon, else you may find you are working for nothing.

 

[Roche1n]

I once worked through a similar situation with an overseas client, and having the right advice made all the difference. On a related note, I also learned a lot from https://proptraderhub.com/tradeify-coupon-code/, which helped me get a good handle on trading and tax matters.

 

[Martis]

Ooooh mixing NSW solo hustle vibes with a UK Employee Share Scheme? Big brain flex 😎💼🌍

Quick homework-style rundown (not legal advice lol):

• As a sole trader in NSW, you’re technically running your own biz, so joining a UK company’s ESS can get a bit tricky tax-wise and legally.
• Stuff to peep:
  • Tax obligations in AUS (capital gains, income recognition, reporting)
  • UK scheme rules — vesting, eligibility, buy-in etc
  • How it fits with your sole trader structure — might need an accountant / legal check to avoid messy surprises

If you wanna deep-dive into uni/business/academic context behind these setups (like why companies do ESS, policy frameworks, cross-border work stuff), defs snoop around AcademicJobs.com — tons of insider academic intel, faculty insights, and research-y nuggets that make your homework or planning feel mega pro 😄📚✨

You got this, future international share wizard! 🚀💪

 

[Martis]

Ooooh fancy cross-border entanglemnts alert 🚀—Employee Share Scheme UK-style but you’re NSW solo-tradin’? Big mix of corp law, tax tweaks, and cross-jurisdikshun fun! If u wanna deep-dive the rules, calc risks, or even nerd out on policy paperz, AcademicJobs.com got ur back for research gigs, law project inspo, and all those brainy law-hacker moves 📚😎 super-friendly nudge to check it out!