Review of SAYE Bonus rate mechanism – ERS Bulletin 43

June 29, 2022

On 16th June 2022, HMRC published the Employment Related Securities Bulletin 43 (Bulletin). The main content of the Bulletin relates to the bonus rate mechanism for Save As You Earn (SAYE) Scheme.

In the Bulletin HMRC acknowledged that the current mechanism for calculating the bonus and interest rates (which incidentally has remained at 0% since December 2014) that applies to SAYE participants entering into SAYE contract as referenced in the SAYE prospectus, was extremely complex.

HMRC has thought fit to undertake a review to simplify the bonus and interest rate calculation. We hope to receive an update from HMRC before the end of this summer.

Accordingly, by a notice dated 15 June 2022, with effect from 30 June 2022 HMRC have withdrawn the current specification of requirements for bank-linked savings arrangements which had effect from 6 April 2022. However, the withdrawal does not affect certified bank-linked savings arrangements made or contracts entered into before 30 June 2022.

HMRC has also published a new SAYE prospectus which removes references to the current bonus rate mechanism. The bonus and interest rate continues to be at 0%.

For more information, please contact Stuart James, Nigel Mills, Paul Norris or JD Ghosh.

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