Save As You Earn – SAYE

The lucky employee contributes money to the scheme over a number of years, which can be topped up by the employer. When the time’s up, he or she gets a tax-free bonus (whoopee!) and can buy shares in the company at a pre-agreed fixed price. Anyone who is offered this option usually finds they’re on to a good thing, unless the company they work for is about to go up the creek, in which case, being a shareholder isn’t such a hot idea. This is similar to an Employee Share Option Plan, but not exactly the same.