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Save as you earn (SAYE) schemes ― an overview

Produced by Tolley in association with
Employment Tax
Guidance

Save as you earn (SAYE) schemes ― an overview

Produced by Tolley in association with
Employment Tax
Guidance
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Introduced in 1980, these are the oldest HMRC tax-advantaged share schemes still in operation. The legislation originally created savings-related share option schemes, but they are also known as save as you earn (SAYE) schemes or share save schemes. Although the name and administrative process has changed and the legislation rewritten, the basic structure and effect of the scheme has remained unchanged.

In May 2023, HMRC invited a ‘call for evidence; in respect of the two main all-employee HMRC-approved share schemes (ie SAYE, and SIPs as described in the Share incentive plans ― an overview guidance note). The terms of reference in the call for evidence are fairly broad, eg what parts of the schemes work well and which aspects are considered to create barriers to greater participation. Overall, it would seem HM Government is looking to increase rather than decrease participation in such schemes, though the extent of any potential changes is not yet clear. The call for evidence closing date was set at 25 August 2023.

SAYE is

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Ken Moody
Ken Moody

Tax Consultant at KM Tax Consultant 


Ken Moody CTA (Fellow), ATT has worked in tax for over 40 years. He qualified as an Associate of the Chartered Institute of Taxation (CIOT) while working for a local firm of Chartered Accountants in his home town Sheffield. Ken then joined a top 30 London firm, managing the tax affairs of a SE-quoted group of companies. As lead tax adviser, this involved complex technical negotiations with HMRC, briefing and meeting with Tax Counsel, group tax planning and advice on corporate transactions. Following a takeover, Ken took on a similar role in Saffery Champness' London office. Since 1995, Ken has worked for firms in the North of England and Scotland, in mainly advisory roles, focussing on the holistic tax affairs of owner-managed businesses (OMBs) and their proprietors. Ken now works as an independent tax consultant advising a number of professional firms of accountants around the North West, where he is based, but also offering nationwide support. Still with an OMB focus, Ken advises across a broad range of UK direct tax issues. Ken's writing career began with articles in Taxation and Tax Journal from about 2000 onwards and in writing in-house tax publications for DTE in Bury, as part of his role as Senior Tax Manager. He has since written numerous articles for professional magazines and other publications. Ken was awarded the Fellowship of the CIOT in 2011 for his work "Employment-Related Securities and Unlisted Companies".

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