SAYE plans | Bonus rate mechanism updated and new rates
Published on 15th Sep 2023
Updated SAYE bonus rate mechanism and rates now in place
Companies operating Save As You Earn (SAYE) plans will be aware that HMRC has updated its mechanism for calculating the bonus rates for SAYE participants. HMRC has published the rates and prospectus that apply from 18 August 2023.
HMRC provided further information in Employment Related Securities Bulletin 53. The new SAYE bonus rates and early leaver rate applicable from 18 August 2023 are:
- three-year bonus rate: 1.1
- five-year bonus rate: 3.2
- early leaver rate: 1.42%
In the future, the bonus rates will change on the 15th day following a change in the Bank of England bank rate (and any change will be recorded in HMRC's guidance Bank of England bank rates for SAYE Schemes).
This is the first time new SAYE participants will receive a bonus since 2014, and (together with the government's recent call for evidence on all-employee plans), this is expected to be a welcome boost for tax-advantaged SAYE plans.
Please get in touch with your usual Osborne Clarke contact or one of the experts below if you have any queries or would like to discuss further.
