An EMI option grant over 0.1 per cent of a Series A company valued at 40 million pounds, with a four-year vest and a one-year cliff, is worth roughly nothing if you leave in month eleven, about 40,000 pounds on paper at the current valuation, and taxed as a capital gain at 10 per cent under Business Asset Disposal Relief if the scheme qualifies and you hold for two years. Recruiters describe that grant as “equity”. Code Academy describes it as what it is.
This site is written for people working in UK software and the people hiring them. It assumes you know what vesting is, what a Series B means, and why a day rate of 650 pounds is not the same as a salary of 150,000. It skips the basics and gets to the detail: salary bands by level and city, EMI versus unapproved options and the tax on each, RSU withholding, the IR35 status determination and what inside and outside actually do to take-home pay, umbrella company deductions, and how to read a term sheet before you sign an offer.
Regulation and tax are cited by section. Salary data comes from a reader-submitted survey published in aggregate, with the methodology open.
Code Academy is edited by Rohan Mehta, who has worked in software engineering and engineering management for many years. It is an independent UK publication and does not give personal financial or tax advice.