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Employee Share Plans Software Limited ("ESP-Software Ltd")

Our Aim

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.

For more information please contact us:
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FAQ: What tax do I have to pay on dividend shares?
Your employer will normally deduct the income tax and NICs under PAYE. If you leave the company and you are a higher rate taxpayer, you may have further income tax to pay if your employer only deducted basic rate tax. You should give details of your shares and the tax you have paid in your Self Assessment tax return.

If the shares can be readily converted into cash (for example, if they are listed on the Stock Exchange) then your employer will deduct the income tax under PAYE and you will have NICs to pay.

If they are not readily convertible assets, there will be no NICs to pay, but you may have to pay income tax and you will have to give details about the shares in your Self Assessment tax return. If you do not usually receive a tax return, you should contact your Tax Office to let them know about the shares by 5 October after the end of the tax year. They will arrange for any tax you may owe on the shares to be deducted through your tax code.
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.