ESP-Software evolved from the need to make the administration of employee share plans simple and to give control of the employee share plans to companies wishing to administer their own plans.
Here, you can learn more about us.
Click here to learn more about The Share Incentive Plans Software (SIPS). And see the demonstration video.
FAQ: How many shares can I get?
Your employer can offer you
free shares - worth up to £3,000 per year
partnership shares - bought with up to £1,500 or 10% of your salary per tax year, whichever is lower
matching shares - up to two matching shares for each partnership share you buy
dividend shares - bought with up to £1,500 worth of dividends per year.
Your employer can set lower limits than these, which will be set out in the plan rules.
Your companys plan may link the award of free shares to your
level of pay
length of service
hours worked, or
The number of partnership shares you receive depends on how much of your income you contribute. The number of matching shares you may receive (if any) depends on the number of partnership shares you buy and the matching ratio set by your employer.
Source: Inland Revenue
A Share Incentive Plan, provided that it is approved by the HM Revenue & Customs,
can provide tax advantages to both the employees and the company directors.
One of the obligations to get your share incentive plan approved is to invite all of your employees.
The Share Incentive Plan legislation provides for three main types of plan shares to be used. They are:
- free shares - employers can give each employee free shares worth up to £3,000
- partnership shares - employees can use up to £1,500 per year out of pre-tax and pre-National Insurance Contributions (NICs) pay to buy partnership shares
- matching shares - employers can give matching shares at a ratio of up to two matching shares for each partnership share bought by the employee
- dividend shares - employees may be allowed to use up to £1,500 of dividends from their plan shares each year to buy further shares in the company through the plan
£9,000 each year - A tax free investment as shares should be very encouraging!
All an employee needs to do is to keep the shares in the plan as long as possible (usually 5 years) to pay less tax and NICs when he finally takes them out.
Please refer to IFS ProShare's briefing on SIPs for more information.
Beat the recession!
Beat the recession and save on outsourcing costs by taking control and managing your SIP in-house with our SIP software.