Save As You Earn (SAYE) is a UK government-approved, tax-advantaged employee share option plan. For UK residents, it allows employees to save monthly from their net salary over a fixed term (3 or 5 years), with the option to buy company shares at a discounted price at the end of the term and become an investor in the company. To see the potential impact on your budget of locking in funds for 3–5 years, consider using the calculation tool in our SAYE guide (PDF).
How SAYEs work
Each month, your chosen savings amount, from £5 to £500, is deducted from your monthly net (after-tax) salary. Then, when your plan ends, you can buy and keep company shares, buy and sell the shares, or take your money back.
- Buy and Keep – Use your savings pot to buy the shares and keep them. They could grow in value over time.
- Buy and Sell – Buy your shares at a discounted price and sell them. You can then keep any profit.
- Taking your money back – You take back your savings and any interest you've earned.
A bonus will also be applied to your savings pot at the end of your plan. The bonus is calculated using compound interest gained over the savings period and in line with the Bank of England base rate. It is generally tax-free and is automatically calculated by HMRC before it's added to your savings pot.
Fidelity Stock Plan Services, working with MUFG Corporate Markets, will perform administrative services on your behalf and will periodically send communications.
Enrolling in the plan
All you need to do is enroll during the enrollment period. Go to Fidelity Fidelity NetBenefits to get started.
Tracking your plan value
The value of your plan is based on the difference between the discounted price you pay for your company's shares and their market value at the end of your plan. Plus, you could also get a bonus. See the current value of your plan at any time in your Sharesave portal, which you can access via NetBenefits.
Understanding your taxes
There are some tax advantages to this share plan. Go to NetBenefits to find out more about how much tax you could pay. Use Fidelity's tax-planning resources to learn more about taxes.
Managing your shares
How you get your payout and whether that's in cash or shares depends on what you choose. It's your savings, and your choice. You can take your contributions out at any time, but it could impact the taxes you pay and may also restrict what actions you can take—see your plan documents for more details.
At the end of the savings period, you can choose to buy your shares and transfer them to an investment account or an Individual Savings Account (ISA). If you choose to buy the shares and then immediately sell them, you'll no longer own a part of your company. You can keep some of these shares to transfer into an investment account. If you choose to take your money back, your savings will be returned to you via your bank account or by cheque.
Support for UK residents
If you live in the UK and are looking for more ways to use your stock plan award, Fidelity International is a separate company that offers resources to help you in your journey.
Getting help
We'll stay in touch through the full life cycle of your plan and let you know when there's action to take. If you have any questions, contact MUFG Corporate Markets on 0333 300 1928. For NetBenefits support, contact Fidelity Stock Plan Services using the calling instructions. Representatives are available Monday to Friday and from 5 p.m. ET on Sundays. Our lines are closed on Saturdays and on holidays when the New York Stock Exchange is closed.
Your Stock Plan Resource Center
The Stock Plan Resource Center provides the help and education you need to understand how your equity compensation works, including taxes, and selling and managing shares.