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Author Topic: SAYE Time off work  (Read 2771 times)

barafear

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SAYE Time off work
« on: 28-08-20, 09:55AM »
Hi

Quick question. I've tried to search for info on Ourtesco or Equiniti but no luck.

So, if I decide to take a lifestyle break and my wages (the odd days holiday) do not cover my SAYE contribution, can I make this contribution by another method in order to maintain payments and the same maturity date?

To be honest, Tesco/Equiniti have us over a barrel here anyway.

Because we make 13 contributions a year, our final contribution is made at least three months before the maturity date (i.e. the date we can sell the shares if we want to).

However, if I just miss payments for three months - then my maturity date gets pushed back three months too - fairly ridiculous!!

Hence, if I take three months off, I will pay the contributions by standing order if I am able to. It seems to be an option if on maternity/adoption leave......but not sure about lifestyle break.

Thanks.

lordadmiral

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Re: SAYE Time off work
« Reply #1 on: 28-08-20, 09:15PM »
Did you use esp-portal where we see our shares, i am on the phone so can't check now but if i am right there was info how to tackle your issue.

Welshie

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Re: SAYE Time off work
« Reply #2 on: 28-08-20, 10:18PM »
@barafear , you can ring them and get a form sent out for a standing order maximum 3 months . I'm sure they'll be more organized now but I started my lifestyle break in March and as everyone was working from home it was a slow process .  I think I still have the email address if you want it .

Welshie

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Re: SAYE Time off work
« Reply #3 on: 28-08-20, 10:49PM »

barafear

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Re: SAYE Time off work
« Reply #4 on: 29-08-20, 12:00AM »
Thanks welshie

Welshie

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Re: SAYE Time off work
« Reply #5 on: 29-08-20, 10:44AM »
I think you can also send them a cheque , that did make me giggle  but I'm sure some people do still have cheque books

barafear

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Re: SAYE Time off work
« Reply #6 on: 11-06-21, 05:20PM »
Ok, bit of an update on this thread. I'm still in the process of wanting to take a lifestyle break - and I followed Welshie's advice above and emailed the Equiniti people - and to be frank they didn't give me a great deal of confidence that any of them knew the process - I had a variety of answers - the latest of which actually stated:

"I can certainly arrange for a standing order mandate to be sent over so that you can set up the payments.....You can pay by standing order for up to 12 months as previously confirmed"

This was the latest email I had from them in March 2021. In the meantime, I've been mulling things over in my head - and my plans were further delayed by the small print of the bonus payment to be paid this month (namely, that if you were on a lifestyle break, you would not get the bonus).

anyway - I'm now ready to ask for my lifestyle break - and I've just checked the policy details on OurTesco - and it states this:

 Benefit: SAYE


Treatment of Benefit:  "Frozen. As the Lifestyle Break is no longer than 52 weeks you will not need to set up a direct debit. However, you will be
removed from the scheme and the benefits will be refunded if you do not start your contributions again after 52 weeks"

This would suggest to me that the opportunity to make up the missing payments by SO/DD is no longer possible?

It's hard to know who to believe on this point? The people at Equiniti or "the Tesco policy"?

I don't want to apply for a 12 Month Lifestyle Break (With the intention of making three or four Standing Order Payments in my absence) only to find that's not possible and that I'll effectively be expected to work another three or four months on my return and complete my SAYE late?

The policy on Ourtesco shows it was updated on 1st March 2021 - albeit the changes made at that date were nothing to do with SAYE.



NightAndDay

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Re: SAYE Time off work
« Reply #7 on: 11-06-21, 05:29PM »
SAYE is a benefit while you're working for Tesco, the benefit of which is preferential rates on shares and savings on NI and tax, by going on a lifestyle break, with the exception of your discount card, you won't be able to take advantage of other benefits such as SAYE and pension (as Lifestyle Breaks are unpaid).

My advice to you would be dependent on the reason of your lifestyle break. If it's to find more gainful employment, then it's worth cutting your losses, if it's non-job related, I'd reconsider going on a lifestyle break and contemplate other options such as holiday or sick leave.

Equiniti is a shareholding platform, Tesco makes the policy so what they say would be the case.
« Last Edit: 11-06-21, 05:31PM by NightAndDay »

barafear

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Re: SAYE Time off work
« Reply #8 on: 11-06-21, 05:38PM »
Is this a recent change then?

Because in the past (and there are threads on here stating it) there seemed to be a difference between lifestyle break and career break - with career break being similar to "ending your employment" (hence not being able to use benefits) and lifestyle seemingly being in a state of continuous employment - continuing to accrue holiday leave and other "benefits" - so seems a bit strange to see the bit about SAYE being Frozen.

Why would Equiniti tell me that it's fine to make the payments by SO - albeit I had about three differing opinions from them over the course of a couple of weeks.

Strictly speaking, "find more gainful employment" would not be an allowable reason for a lifestyle break in the first place.
To be honest, I just need to recharge my batteries - I've worked quite a lot over the past year - no holidays (Covid restrictions!) - and whilst off to reconsider my working future with Tesco - but certainly not to be looking for alternative employment whilst I plan to be off.

And the latest pay deal has prompted me to accelerate my decision making.

Clearly, if the share price fell to below the option price, then I wouldn't really be worried at all!!! But I'm not going to give up on the "potential profit" if I don't have to - alebit, given the date we get the shares isn't for another 11 months or so - anything could happen to the share price!!

Totot

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Re: SAYE Time off work
« Reply #9 on: 12-06-21, 09:32AM »
I would never trust equiniti, that is the worse company ever that try to survive in modern era.
Got my own experience with it, still have not been able to sell my shares because their own mistake.

Really hard to communicate with them, and what they told you, might change the next time you ask them if you can get through.

NightAndDay

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Re: SAYE Time off work
« Reply #10 on: 12-06-21, 10:01AM »
Is this a recent change then?

Because in the past (and there are threads on here stating it) there seemed to be a difference between lifestyle break and career break - with career break being similar to "ending your employment" (hence not being able to use benefits) and lifestyle seemingly being in a state of continuous employment - continuing to accrue holiday leave and other "benefits" - so seems a bit strange to see the bit about SAYE being Frozen.

Why would Equiniti tell me that it's fine to make the payments by SO - albeit I had about three differing opinions from them over the course of a couple of weeks.

Strictly speaking, "find more gainful employment" would not be an allowable reason for a lifestyle break in the first place.
To be honest, I just need to recharge my batteries - I've worked quite a lot over the past year - no holidays (Covid restrictions!) - and whilst off to reconsider my working future with Tesco - but certainly not to be looking for alternative employment whilst I plan to be off.

And the latest pay deal has prompted me to accelerate my decision making.

Clearly, if the share price fell to below the option price, then I wouldn't really be worried at all!!! But I'm not going to give up on the "potential profit" if I don't have to - alebit, given the date we get the shares isn't for another 11 months or so - anything could happen to the share price!!

Equiniti would be parroting Tescos old policy, as the SAYE is deducted through PAYE, it's required to go through that payment process, i.e you have be have a payslip through which it can be deducted. One of the lauded benefits of SAYE is that it saves you money on tax liabilities, the other being that it grants you access to buy shares from Tesco at a preferential price, as the deductions are marked as SAYE, only Tesco would be able to fulfil this.

I thought the recent changes have  essentially put the 2 together as 1 and is now just a lifestyle break. In that you go off for up to a year and come back and reapply to your old job if it's still there. During your lifestyle break you don't get paid but keep your discount card.

Also yes, Tesco say it's not for finding another job, on the same token however you have no guarantee that your job would be waiting for you at the end of the lifestyle break. You can find another job and resign, There's nothing Tesco can do if that's the case, it's merely a rule of empty platitude.

A while ago I remember Tesco had a dedicated policy team that you could email. While I'm fairly certain the SAYE is only applicable while you're getting paid (and the fact it's called Save as You Earn implying you have to be earning a wage for it to apply) they can help you, I believe you may find their email somewhere if you read through Our Tesco.

barafear

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Re: SAYE Time off work
« Reply #11 on: 15-06-21, 05:04PM »
Just an update on this query given the lack of clarity on the policy and conflicting advice both on here (possibly based on the old Career Break/Lifestyle break policy) and from Equniti - who seemingly had a different answer every other day during my email exchange to them.

I have now reverted to Ourtesco - I'm guessing this is something else which is relatively new - the ability to "ask a query" and get an answer from the "right team/person"!! Not sure if this is something that's always been available on Work and Pay - but as I'm not on there not something I would have known.

So - after a few days I got a response to my query:

We can confirm that once the colleague goes in life style break the SAYE deduction will stop automatically and once the colleague back from the life style break the deduction will start.

The colleague can also do direct payment to Equiniti for 12 period if the colleague is in life style break if they don't want to miss the contributions.


So, where the policy refers to "SAYE Frozen" on taking a lifestyle break, I'm guessing this refers to the deduction of contributions - rather than the ability to continue making contributions and therefore for the actual SAYE scheme to continue as it would -

One change to the lifestyle policy I did note was that you used to be able to take further lifestyle breaks - albeit there had to be a gap of at least two years between them - they've changed that to a gap of six years!


« Last Edit: 15-06-21, 05:05PM by barafear »