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: Can I transfer my shares to someone else?
Yes. You can transfer your shares directly into a stakeholder or personal pension, as long as you do so within 90 days of taking them out of the plan. Not all pension schemes will allow you to do this, so you should check with the scheme administrator first.
When you transfer your shares into a personal or stakeholder pension, HM Revenue & Customs will credit your pension account as if you had paid basic rate tax (22% for tax year 2005/06) on the shares. So, if you have shares worth £780 and transfer these into your pension, we will add a further £220. If you pay tax at the higher rate, you may also claim higher rate tax relief on your Self Assessment tax return.
Once transferred into a personal or stakeholder pension, the shares may only be used to provide benefits under the rules of the pension scheme. Please refer to our website at www.hmrc.gov.uk/pensionschemes/guidance.htm for more information about the conditions attached to pension contributions.
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.
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