Products
SIPS
SIPS (The Share Incentive Plans Software) is designed for the administration of the Inland Revenue approved Share Incentive Plan (the "SIP").
- Generates all the documents necessary for the administration of the SIP
- Produces comprehensive reports for management and participants
- Gives wide flexibility in allocating shares
How can the SIPS benefit your company?
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FAQ: Partnership shares
You can buy partnership shares using your gross pay. However, the limits on how much you can spend on partnership shares are the lower of:
• £1,500 per tax year, or
• 10% of your total salary for the tax year.
Your employer may specify whether all or only part of your salary is to be used when calculating the maximum percentage of salary to be spent on partnership shares. For example a scheme may exclude a particular description of earnings, such as overtime or bonus payments.
Buying shares using your gross pay means that you will not have to pay income tax or National Insurance contributions (NICs) on the money that you use to buy them. NICs savings may not affect you if you would not have paid NICs on the money because you earn below the employee earnings threshold. Tax savings may not affect you if you earn below the personal allowance.
Source: Inland Revenue
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