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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): Temporary postponement of contributions

The terms of the Prospectus allow an employee to delay the payment of up to six monthly contributions, by up to six months in total, without causing the savings contract to be cancelled prematurely. But if the participant fails to make a contribution on the due date for a seventh time he is treated as if he had given notice of intention to stop making contributions permanently.

Temporary postponement of contributions will put back the 3 or 5 year maturity date of the savings contract, and the rights of option exercise linked to it, by up to six months.

If companies grant options at the same time each year, an employee’s temporary postponement of contributions under an existing savings contract may affect the extent to which he can enter into a new savings contract, and therefore the extent to which he may apply for options under the next offer of options.