08 August 2023
The Employment Related Securities Bulletin 53 has been published by HM Revenue and Customs (HMRC). The guidance outlines the Save As You Earn (SAYE) bonus rates and early leaver rates that apply from 18 August 2023.
SAYE is a savings-related share scheme where an employee can buy shares in a company for a set time and at a fixed price, in a tax-efficient way. Following the launch of the new SAYE bonus rates automatic mechanism and specimen SAYE prospectus as set out in Bulletin 51, new SAYE bonus rates and early leaver rate will apply from 18 August.
These will be:
- three-year bonus rate: 1.1
- five-year bonus rate: 3.2
- early leaver rate: 1.42%.
This is the first time, new participants will receive a bonus since 2014.
SAYE bonus rates and early leavers rates are calculated in line with the new Bank of England (BoE) bank rate, providing greater certainty and transparency for users. Going forward, the rates will change on the 15th day following a change in the BoE bank rate. The next date the BoE may be expected to change the bank rate is 21 September 2023.
HMRC will not routinely provide updates within Bulletins. However, the bonus rates, early leaver rate and the effective date of any change will be recorded in change in bonus rates for SAYE Share Option Schemes.
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