BAYE – expand your horizons
With Buy As You Earn you become a part-owner of NatWest and save tax on your investment.
Discover BAYE Use our calculator
Discover Buy As You Earn – a great opportunity to explore new financial horizons
Buy As You Earn is your chance to build a shareholding in NatWest by investing straight from your pay each month.
Because the money comes from your pre-tax pay, you’re saving income tax and National Insurance every time you invest.
And so long as you keep your shares in the plan, they’re free of all income tax and you won’t pay capital gains tax when you come to sell.
Join Buy As You Earn and embark on a voyage of financial discovery.
Here’s why we think Buy As You Earn is worth a closer look
Save income tax and NI
Get a tax break every month you invest
Celebrate success
When NatWest thrives, so do you!
Affordable
You can join from just £5 a month
Super-flexible
Change, pause or stop your investment at any time
Get into the habit
Investing monthly is an easy way to invest for your future
A great way to start
Perfect for first-time investors to get started with shares
How does it work?
You can sign up anytime.
Pick how much you want to invest each month. It can be between £5 and £150. You can change this amount whenever you like.
We take this straight from your pay – before tax is taken off. Then we use that money to buy shares in NatWest for you. These are called ‘partnership shares’.
And because it’s taken from your pre-tax pay, you’re saving income tax and National Insurance each time you invest.
The shares build up in your EquatePlus account, and you can keep track of them online.
How the tax and NI savings work
When you buy shares through the plan, you’ll save income tax and National Insurance.
Your potential tax savings are based on the rate of tax you pay. You can see some examples below.
| Your highest tax rate | Monthly investment | Tax saving | Effective cost of shares |
|---|---|---|---|
| 20% income tax and 12% NI | £100 | £32 | £68 |
| 40% income tax and 2% NI | £100 | £42 | £58 |
| 45% income tax and 2% NI | £100 | £47 | £53 |
If you pay tax in Scotland, income tax rates are different. You can use our calculator to work out your tax saving and the effective cost of the shares.
How much tax could you save?
Use our calculator to see what your tax savings could be worth.
Use our calculator
Dividends – even more shares
When we make a profit, we usually pay some of it out to our shareholders. This is called a dividend. When you hold shares through Buy As You Earn, you have a choice how you receive dividends.
You can choose to have your dividends paid as cash – in which case the payment will be taxable. Or you can use your dividends to buy extra shares, known as ‘dividend shares’.
You can’t sell dividend shares for three years, but after that they’re free from any tax.
When can I sell my shares?
You can sell partnership shares at any time, but if you sell them before five years, you’ll need to pay tax and National Insurance.
After five years there’s no tax to pay. You can’t sell dividend shares for three years, but after that they’re free from tax.
What about risk?
Like all investments, shares in NatWest can go down as well as up in value.
It’s generally wise to invest for the long haul. This means you have more time to weather any ups and downs. Five years or more is usually best – and that way you get to keep the tax breaks too.
You’ll find more information about investment risk in our helpful blog post.
Why should I join?
Buy As You Earn could be great for you if:
- You want to become a part-owner of NatWest and save tax each month
- You can spare the money from your pay
- You can afford to lock that money away for up to five years
- You’re planning to stay at NatWest for the long term
But it might not be the right time if:
- You’re in debt or other financial difficulties
- You’re likely to need the money in the next five years
- You’re thinking of leaving us shortly
If you’re not sure the plan is right for you, you should seek independent financial advice.
How to join Buy As You Earn
If you’re logged into the NatWest network, visit EquatePlus. EquatePlus is the portal run by Computershare, who manage the plan.
If you’re not on the network you can go to: www.equateplus.com. You’ll need the User ID from your new joiner email sent by Computershare. If you can't find your User ID, you’ll need to call +44 (0)370 702 0109.
When you’re logged in, select the BAYE enrolment task in the list of ‘Your Tasks’ and follow the instructions.
If you've got the EquateMobile app, you can also join BAYE from there.