Save As You Earn (SAYE or Sharesave)

This scheme allows employees to save between £5 and £250 per month for three, five or seven years. Employees get a tax-free bonus if they complete the savings plan.

Employers grant employees an option. At the end of the period, employees choose either to:

• use the money saved, plus the bonus and interest, to buy shares in the business; or
• have their contributions returned.

Neither the bonus nor any gains made on the shares are subject to income tax or NICs. CGT may be payable on sale.

Employers have different terms and conditions for their schemes. However, businesses must offer every eligible employee the chance to participate.