National Insurance Contributions (NICS) are reducing from 6 November, marking another change (this time a positive one!) to employees’ pay packets.
It could also have implications for colleagues enrolled in an all-employee share plan. For employees in a Share Incentive Plan (SIP), what’s due and when is rather complex – but our handy chart is a useful starting point! It clearly sets out what NICs are due and when on the different types of shares in a SIP.
The more guidance you can provide, the more in control your colleagues will feel about their own financial situations – invaluable support in these confusing times!
For people in other all-employee plans, the changes won’t impact them unless:
- They’ve been granted a discounted share option.
- There’s been a disqualifying event.
- A CSOP participant exercises their share option within 3 years.
Need more information on NICs?
Here are useful resources for further reading:
- Chart: National Insurance Contribution and Income Tax on SIPs
- HM Treasury’s announcement on reversing the National Insurance increase
- What the hike in National Insurance payments means for share plans
Drop us a line if you’d like some help communicating your share plan messages, including the impact of these recent changes.
