Can a company give Share Options to a contractor?

Can a company give Share Options to a contractor?

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Hi, 
A startup company developing software is taking on board a person as self employed and wants to offer share option as an incentive. Is this possible or is this available to employees only? 

Thanks in advance.

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By Justin Bryant
15th Oct 2014 13:46

Yes
ITEPA 2003 only catches employees, so you can reward him how you like (assuming of course he is genuinely SE and he does not thereby become a participator re s455 issues etc.).

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By jndavs
15th Oct 2014 14:11

Just to be safe

Check the Memorandum for any restrictions on issues.

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By TerryD
15th Oct 2014 17:47

There will be, of course, complicated accounting procedures to be followed - see the share based payments section of the FRSSE. You'll have to value either the work performed that is being remunerated by the option or, if that is not possible, the option itself.

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