SAYE plans | Postponement of contributions
Published on 10th Jul 2018
The government announced in the 2017 Autumn Statement that there would be an extension to the save-as-you-earn (SAYE) savings holiday for participants on maternity and parental leave, from 6 to 12 months. The introduction of the change has been slightly delayed. However, the increased flexibility is to be extended to all participants (rather than just those on maternity and parental leave).
From 1 September 2018, employees with a savings contract under a SAYE scheme will be able to delay monthly contributions on a maximum of up to 12 occasions, without causing the savings contract to be cancelled.
HMRC has now published the guidance which will apply from 1 September 2018. This confirms that:
- HMRC will update the specimen SAYE prospectus from 1 September 2018; and
- new SAYE contracts do not need to be issued for contracts that started before 1 September 2018. All employees with a savings contract in place on 1 September 2018 can delay the payment of monthly contributions on a maximum of 12 occasions over the life span of the savings contract. If the employee has already delayed the payment of contributions on 6 occasions, they can only delay payments on a further 6 occasions.
For the new guidance, see Employment Related Securities Bulletin 29.
Please do get in touch if you have any queries or would like to discuss any of the issues covered in this Insight.