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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

HM Revenue & Customs
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Schedule 3 SAYE option schemes: Linkage to savings (arrangement): Deductions from pay

The Prospectus requires that the monthly contributions should normally be made through deductions from pay. The following exceptions have been allowed:

  • Where the employer is a clearing bank and every employee has a current account with the bank, contributions may be made by standing order,
  • If employees are paid weekly, monthly contributions may be made out of a ‘feeder account’ for each employee (see ETASSUM34110),
  • If an employee is on maternity leave,
  • If an employee is on parental or adoption leave,
  • If an employee is a reservist called up for military service,
  • If an employee is on long-term sick leave,
  • If an employee is on secondment,
  • If an employee is on sabbatical leave, or
  • After cessation of employment the participant will normally be allowed to continue making monthly contributions direct to the savings body:


  • either for a period of up to six months to accumulate extra savings with which to exercise an option during that period,
  • or for the remainder of the 36 (or 60) months to the maturity of the savings contract, if the ex-employee is unable or chooses not to exercise his or her share option.

If a person dies before he has completed the payment of 36 (or 60) monthly contributions, no further contributions can be made under his savings contract.