HMRC in the UK has announced a review of the Save As You Earn scheme bonus mechanism. The review will consider options for simplifying the mechanism used to calculate interest and bonus rates for SAYE schemes. In HMRC’s own words: “The current mechanism is extremely complex.”
The announcement will be of interest to Irish company’s that running SAYE scheme in the UK. It comes as the potential for SAYE interest / bonus rates are due to kick in again later this year for the first time since December 2014.
The review will take place over the summer, however, a new SAYE prospectus came into effect on 30th June, which removed the reference to the current bonus rate mechanism. The new specimen prospectus can be found here.
HMRC has committed to providing an update before the end of the summer. Full information can be found in Employment Related Securities Bulletin 43 (June 2022) – SAYE Bonus Rate Mechanism Review.