
Save As You Earn (SAYE) bonus rates and early leaver rates change from 18th August 2023.
Save As You Earn (SAYE) Bonus Rates from 18th August 2023
HMRC have confirmed that following the launch of the new SAYE bonus rates automatic mechanism and specimen Save As You Earn (SAYE) prospectus as set out in Bulletin 51, new SAYEbonus rates and early leaver rate will apply from 18th August 2023.
These will be:
- 3 year bonus rate: 1.1
- 5 year bonus rate: 3.2
- early leaver rate: 1.42%
This is the first time new participants in SAYE schemes will receive a bonus since 2014.
Going forward, the rates will change on the 15th day following a change in the Bank of England Bank Rate. The next date the Bank of England may be expected to change the Bank Rate is 21st September 2023.
HMRC indicate that they will not routinely provide updates within future Bulletins. However, the bonus rates, early leaver rate and the effective date of any change will be recorded in change in bonus rates for Save As You Earn (SAYE) Share Option Schemes.
Opinion
Not overly a change impacting payroll as the fixed deduction from pay funding an SAYE remains unchanged, however, the reintroduced bonus concept may provide elements of growth with the use of the schemes in workers and employees becoming a shared owner of their business.
PAYadvice.UK 8/8/2023