The end of the tax year sees the end of temporary covid-19 contribution suspensions for Save As You Earn (SAYE) at the end of the tax year i.e., 5th April 2022.
As part of the lockdown actions, the Government allowed the suspension of SAYE contributions for employee benefit share savings schemes to be suspended for an unlimited period.
With effect from the start of the new tax year any new SAYE schemes started from 6th April 2022 will not benefit from any contribution suspensions.
Existing SAYE schemes:
Employees can continue to delay payments of monthly contributions on up to 12 occasions in total, without causing the savings contract to be cancelled. Any delays will extend the savings contract by the amount of ‘missed’ payments.
What is SAYE?
These are simple savings schemes offered to employees. If your employer offers an SAYE earn, you can save up to £500 per month in a designated SAYE savings account for a term of 3, 5 or 7 years. At the end of the term, your savings can buy shares in the company at a fixed price. Usually, the share price is the price that it was at the start of the savings contract either 3, 5 or 7 years ago.
SAYE Benefits