1. What motivated you to write The Employee Ownership Manual originally — and what prompted this updated second edition?

When we published the first edition in 2019, there was growing interest in employee ownership, but limited practical guidance available that was both legally accurate and accessible. Our aim was to fill that gap — not with theory, but with a hands-on guide for those considering the journey, and for advisers supporting them.  So we called it The Employee Ownership Manual.

Since then, things have moved on. Many more companies have now made the transition, interest in employee ownership has grown, we have some new tax rules and we’ve learned a lot from our own company becoming employee owned. It felt like the right moment to refresh the content to reflect how things have changed.

2. How does the second edition differ from the first?

We’ve updated all sections to reflect current legal and tax considerations (as of May 2025).

3. Who is this book written for?

This book is for anyone with a stake in employee ownership. Business owners at the early stages, yes — but also lawyers, accountants, HR professionals, and trustees. We know from experience the importance for anyone involved in a business’s transition to employee ownership to understand both its technical and human sides. The Manual is designed to meet that range of needs.

4. What are some of the most common misunderstandings you see when businesses start to explore employee ownership?

One common myth is that employee ownership only works for certain types of businesses, like small consultancies. In fact, it can suit the widest variety of sectors and company sizes — for example manufacturers to creative agencies to professional firms.

Another is that moving to employee ownership is primarily a tax planning exercise. While there are tax advantages, the real value lies in how it can create better businesses through engaging employees and rewarding them for success. The book aims to show that broader picture.

5. How important is cultural and organisational readiness when considering employee ownership, beyond the legal mechanics?

It’s essential. The legal and tax structures are important as the foundation. But what really drives long-term success is cultural and organisational: a willingness to share information, involve employees in decision-making, build trust and reward employees as a team for their contribution.

You don’t need to have everything perfect from day one, but there must be a genuine commitment to developing an ownership culture. That’s why the Manual focuses just as much on people and communication as it does on the legal and tax framework — both are crucial.

6. What kinds of businesses are best suited to employee ownership — and are there any that you think overlook it unnecessarily?

Potentially most businesses, although those with a very small number of employees may not be eligible for the tax benefits.
A business with a poor culture and unengaged employees may find it more challenging to make a successful transition, although these are now few and far between.

7. You talk about the tax benefits. What are they?

The main ones are:
• If you sell your company to an employee ownership trust, you don’t pay any tax on your sale proceeds
• Employees can receive an annual bonus free of income tax

8. Looking ahead, where do you see the employee ownership movement going — and what role can this Manual play in that growth?

It’s growing steadily, and not just because of tax or succession drivers. There’s a wider recognition that employee ownership can create more resilient and better performing businesses and a more inclusive form of capitalism. As the employee ownership continues to grow, we need clear, trusted sources of guidance — and I hope this book will continue to be one of them.