Buy As You Earn
FAQs
Joining BAYE
Anyone can join, except those who are on a career break, or based outside the UK or Isle of Man.
You can join any time. Simply complete the BAYE enrolment task on your EquatePlus account and follow the onscreen instructions to join.
There are no fees to buy or hold shares through the plan. And there’s no government stamp duty either. You’ll pay Computershare’s dealing charges if you sell your shares.
You can put in between £5 and £150 a month, or up to 10% of your gross monthly pay if this is less than £150. The money is taken straight from your pre-tax pay.
Yes – you can join both plans and the monthly limits are separate.
That depends on your personal preferences. Both plans have some great features, but there are also some key differences. You’ll find full information on both plans on the Share Plan Hub. And remember you can join both if you like!
Managing BAYE
Yes – you can do this any time (subject to the Personal Account Dealing Policy – see FAQ below). You’ll need to make any changes by the last day of the month for them to apply the following month. You can make changes via the the BAYE task on your EquatePlus account, or by calling Computershare on +44 (0)370 702 0109.
Shares will be bought on the 28th of each month (or the nearest working day if the 28th falls on a weekend). The price you’ll pay will be the market price on the London Stock Exchange on the day the shares are bought.
Your shares will be held on EquatePlus, where you can view and manage your shares. Your shares will usually appear in your account two days after they're bought. You can view details of your BAYE shareholding by clicking on the Buy As you Earn tile.
You can sell your shares by logging into your EquatePlus account and following the instructions. Remember that if you sell partnership shares before you’ve held them for five years, you’ll need to pay tax. This will be automatically taken off your sale amount, which you’ll get through payroll. If you sell shares where no tax is due, the money will be paid straight to your bank account.
If the PAD policy applies to you, you can’t start, stop, or change your monthly investment when you’re in a closed period.
If you’re an insider or work in a defined business area, you’ll need to get prior authorisation if you want to join or make changes outside a prohibited period.
Any share sales are subject to the policy - you’ll find the rules on the intranet.
What happens if...
If you’re being paid via payroll, we’ll still take your payment. If you’re not being paid, you can make direct payments to Computershare instead. Just get in touch with Computershare directly and they’ll help you set up payments from your bank account. Your monthly contributions can’t be more than £150, or 10% of your gross monthly pay, whichever is lowest. Where these limits would be breached, your contribution will be scaled down.
If you leave because you’re made redundant, retire, or through injury or disability, or the company you’re employed by is no longer part of NatWest, your shares will be transferred to a dealing account with Computershare. You won’t need to pay any tax. If you resign or you’re dismissed, your shares will be transferred to a dealing account, but Computershare will sell a number of shares to cover the tax and National Insurance due. Computershare will be in touch with you at the time to explain your options.
If you die, your savings will automatically stop. Computershare will transfer your shares to your personal representative, and no tax will be due.
Buy As You Earn is only available in the UK and Isle of Man – if you move elsewhere, you’ll need to leave the plan.
Please use the HelpChat on EquatePlus. Or you can call Computershare on +44 (0)370 702 0109.
Tax
We take your chosen amount from your pay before tax has been paid, so you’ll save income tax and National Insurance on your monthly amount.
If you choose to receive dividends as cash, these are subject to tax. If you choose to receive them as extra shares, you can’t sell them for three years but after that they’re tax-free.
If you sell partnership shares before you’ve held them for five years, you’ll need to pay income tax and National Insurance. This will be automatically taken off your sale amount. Once you’ve held them for five years, there’s no tax to pay.
If joining Buy As You Earn takes your earnings below the Lower Earnings Limit for National Insurance, this could affect your entitlement to social security benefits. You can find more information on the HMRC website or by contacting your local tax office.
We’re giving you the tax information above to help you make your own decisions. It’s not advice. It’s based on our understanding of current tax rules, but these might change. Remember that tax depends on your individual situation – if you’re not sure you should seek professional advice.
So long as you hold shares in the plan, they’re free from Capital Gains Tax.
We’re giving you the tax information above to help you make your own decisions. It’s not advice. It’s based on our understanding of current tax rules, but these might change. Remember that tax depends on your individual situation – if you’re not sure you should seek professional advice.
Important information
This document contains only some information relating to NatWest Group plc 2020 Employee Share Ownership Plan (the ‘Plan’).
Your participation, or right to participate, in the Plan is governed by the Plan rules and does not affect, or form part of, your contract of employment. These rules include specific provisions limiting your rights under the Plan. You will not have any rights to compensation or damages for any loss of rights, benefits or prospective benefits under the Plan as a consequence of the termination of your employment.
There is no guarantee that the Plan will be operated in future years, or, if it is operated, that you will be selected for participation in it. NatWest Group plc may amend, suspend or terminate all or any part of the Plan at any time, but may only do so in accordance with the Plan rules.
No information in this document should be taken as providing any investment or financial advice or as a recommendation to buy, sell or hold shares in NatWest Group plc. The value of shares and the income from them can fall as well as rise and an investor might not receive back the full amount invested in shares.
If you are in any doubt as to what action you should take and/or the financial or taxation implications of any decisions you might make, you are strongly recommended to seek independent professional advice.
References in this document to any taxation consequences are those generally applying at the time of publication (October 2020). They are provided for guidance only. Tax legislation may change in the future. The actual taxation consequences and the availability (and value) of any tax relief will depend on your own individual circumstances.
In the event of any conflict between this document and the Plan rules or any applicable legislation, the Plan rules and legislation will take precedence.
The shares are offered to you by the NatWest Group plc in accordance with the terms of the Plan. NatWest Group Colleagues in the UK and Isle of Man who meet the eligibility requirements are being offered shares under the Plan as an added incentive and to encourage colleague share ownership and so increase their interest in the success of NatWest Group.
The maximum number of NatWest Group shares being offered under the Plan on this occasion will not exceed 10% of the issued share capital of the Plan (operating as Buy As You Earn) and the minimum number is nil. The shares to be used under this offer may be existing shares or new issue shares. Further information on NatWest Group, NatWest Group’s share price and details of the rights attaching to the shares can be found in the Investor Relations section of the NatWest Group website at www.natwestgroup.com.
Certain information is provided in this document in order for this offer and any subsequent admission of shares to trading to fall within Article 4.1(e) and Article 4.2(f) of the Prospectus Directive (2003/71/EC) which exempt NatWest from producing a prospectus under that directive.
Any questions?
If you still have questions, please use the HelpChat on EquatePlus.
Or you can call Computershare on +44 (0)370 702 0109.