On May 26, UK HMRC updated mechanism for calculating SAYE rates.
HMRC has updated its mechanism for calculating the bonus rates for SAYE participants.
Follows HMRC Jun. 2022 review on Save As You Earn (SAYE) Bonus Rate Mechanism.
SAYE Mechanism
HMRC worked with close support of external stakeholders to develop the mechanism.
The bonus rates will now be calculated with reference to the BoE Bank Rate (also known as the ‘base rate’), providing greater certainty and transparency for users.
HMRC will record the bonus rates, early leaver rate and the effective date of any change in change in bonus rates for Save As You Earn (SAYE) Share Option Schemes.
For now, current rates have been provided, but HMRC is expecting to add rate which will apply from Aug. 18, 2023 following confirmation of Bank Rate in early Aug. 2023.
Specimen save as you earn (SAYE) prospectus issued to give effect to new mechanism.
This prospectus will not require replacement to update the bonus rate in future.
Effectiveness
New bonus rates automatic mechanism will come into effect from Aug. 18, 2023.
Aug. 2023
On Aug. 18, 2023, UK HMRC confirmed new SAYE bonus rate mechanism in effect.
Nov. 2024 SAYE Bonus Rate Changes
On Nov. 7, 2024, UK HMRC confirmed latest bonus SAYE Share Schemesrate changes.
Both the 3-year and 5-year rates for SAYE Share Option Schemes will change on 15th day following change in UK BoE Bank Rate, in SAYE bonus rates automatic mechanism.
Employees who are already saving under existing SAYE contracts are not affected by changes, but will affect all new Scheme members, as well as early leaver SAYE rates.
UK BoE publication date is Nov. 7, 2024, effective SAYE Scheme date is Nov. 22, 2024.
