Save As You Earn (SAYE): What you need to know for 2026

Companies need to stay on top of the rules and regulations governing the equity compensation plans they offer to employees. Here is the state of play with SAYE for 2026.

What is it?

Sharesave, also known as Save As You Earn (SAYE), is a UK tax-advantaged all-employee share scheme. It allows participating employees to purchase company shares over a set period of time at a fixed, often discounted price. What makes it particularly appealing is that even if the share price has fallen at maturity participants can get their saving back – making it a low-risk offering

What’s changed recently?

The interest earned on SAYE savings is formally linked to the Bank of England (BoE) base rate and  the most recent rate adjustment for both three-year and five-year SAYEs came into effect in August 2025. Under HMRC (HM Revenue & Customs) rules, changes become applicable to SAYEs on the 15^th day after a formal BoE rate announcement. It is important to note that existing SAYE contracts are not affected by base rate changes, i.e., they are bound to whatever the rate was on day one of the agreement.

In November 2025, the Government published the outcome of its Call for Evidence on SAYE and share incentive plans (SIPs). While no fresh changes to either scheme has been announced as of yet, HMRC has indicated it will review its guidance for the scheme in light of the submissions received and with a view to making future changes if deemed necessary.

What are the current rules?

UK companies looking to introduce and run an SAYE need to abide by several statutory requirements, including:

1. HMRC registration and reporting: The scheme must be formally registered and self-certified with HMRC. Annual returns must be filed by July 6th following the end of each tax year.
2. Broad eligibility: The scheme must be offered to all qualifying employees and directors on similar terms. A qualifying service period of up to 5 years may be required.
3. Savings limits and periods: Monthly savings must be between £5 and £500, with either three-year or five-year savings contracts.
4. Option price discount: The option price can be discounted by up to 20% below market value at grant and remains fixed throughout the savings period.
5. Share requirements: Only ordinary, fully paid, non-redeemable shares are permitted. Shares must be listed on a recognized stock exchange or meet requirements for unquoted companies.
6. Exercise of options: Options are usually exercisable for a period of six months after the end of the contract.
7. Withdrawal rights: Employees must have the right to withdraw their savings and receive the money back instead of exercising their options.
8. No assignment of options: Options cannot be transferred, assigned or used as security.
9. Leaver provisions: Clear rules must allow early exercise for ‘good leavers’ (e.g., injury, disability, redundancy, retirement, death or company takeover).

What else?

As well as meeting statutory obligations, issuers can also look at additional ways to maximise the benefits associated with the SAYE scheme for both the company and participating employees.

1. Partner with a share plan administration provider: An experienced provider like J.P. Morgan Workplace Solutions can help with accurate record-keeping, timely HMRC reporting, seamless enrolment and option exercise processes, while also handling technical complexities that can arise.
2. Lean into employee communications and education: It’s crucial that eligible participants are informed about the offering so they can partake. You should look to develop clear materials explaining the SAYE in simple terms with real-world scenarios. Providing regular updates, workshops, webinars, FAQs and one-to-one support throughout the savings period can help employees understand the benefits and therefore make more informed participation decisions
3. Maximise flexibility: It’s possible to offer both three-year and five-year contract options to suit different employee preferences, assuming doing so is also compatible with the company’s goals and objectives.
4. Time invitations strategically: Consider aligning SAYE launches with key moments like annual results announcements or good company news to generate positive momentum and help employees connect their participation with company performance.
5. Provide Capital Gains Tax (CGT) planning support at maturity: Assist employees approaching contract end about their options, such as the 90-day window to transfer shares into a Stocks & Shares Individual Savings Account (ISA). With the CGT annual exemption set at £3,000, such guidance could prove invaluable for protecting employee gains.

What next?

At J.P. Morgan Workplace Solutions, our equity management software together with our experienced professionals have helped businesses implement and administer their SAYE plans from launch through to maturity. We can help streamline the process of handling employee data, enrolment, managing contributions, task tracking, reporting, tax and compliance and everything in between.

If you’d like to see for yourself how we could benefit your company, book a one-on-one, no-obligation consultation with one of our team today.