HMRC has announced that it intends to review the mechanism for calculating the bonus or interest rate applied to save as you earn (SAYE) scheme contracts. The review will consider options to simplify the mechanism, although HMRC’s guidance does not explain what these options might include. Until the review is complete, the bonus rate will remain at 0%.
HMRC discussed the plan to review the mechanism at its share schemes forum meeting on 7 June 2022 (minutes from which are expected to be posted online in due course) and intends to ‘discuss the mechanism with stakeholders to inform any decisions made’.
HMRC aims to provide a further update before the end of summer 2022.
Three and five-year SAYE contracts include a bonus or payment of interest which (in principle) pays out at the end of the contract. The bonus or interest rate is expressed as a multiple of the monthly amount saved into the scheme. Since 2011, however, the bonus rate for all three-year and most five-year contracts has been nil, reflecting the very low prevailing interest rates over the period.
HMRC has announced that it intends to review the mechanism for calculating the bonus or interest rate applied to save as you earn (SAYE) scheme contracts. The review will consider options to simplify the mechanism, although HMRC’s guidance does not explain what these options might include. Until the review is complete, the bonus rate will remain at 0%.
HMRC discussed the plan to review the mechanism at its share schemes forum meeting on 7 June 2022 (minutes from which are expected to be posted online in due course) and intends to ‘discuss the mechanism with stakeholders to inform any decisions made’.
HMRC aims to provide a further update before the end of summer 2022.
Three and five-year SAYE contracts include a bonus or payment of interest which (in principle) pays out at the end of the contract. The bonus or interest rate is expressed as a multiple of the monthly amount saved into the scheme. Since 2011, however, the bonus rate for all three-year and most five-year contracts has been nil, reflecting the very low prevailing interest rates over the period.
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