SIP vs SAYE Calculator
Two of the UK’s most generous employee share schemes, side by side. Enter your numbers once and see which one — Share Incentive Plan or Sharesave — actually saves you more tax.
Compare Your SIP and SAYE Side by Side
Fill in both columns with your own numbers. We’ll show the tax saved, the cost to you, and the projected value for each scheme — then tell you which one wins for your situation.
🌿 Share Incentive Plan (SIP)
🏦 Save As You Earn (SAYE)
SIP vs SAYE: The Real Difference
Share Incentive Plans and Save As You Earn schemes both sit inside HMRC’s all-employee share scheme rules, and both are genuinely tax-advantaged. But they save you money in completely different ways, which is why a side-by-side calculator is more useful than reading either scheme’s rules in isolation.
A SIP saves tax on the way in. Partnership Shares are bought from your gross salary, so Income Tax and employee National Insurance never touch that money, and a generous employer match can add free shares worth one or two times your own contribution. The trade-off is market exposure from day one: your contribution is in real shares, so if the price falls, your holding falls with it (the tax relief simply softens the blow).
SAYE saves tax on the way out. You save cash each month into a savings contract, and at the end of the term you get to buy shares at a price fixed up front, often at a 20% discount to where the price was when you joined. If the share price has risen, you exercise the option and pocket the gain with no Income Tax or NI due. If the price has fallen below your option price, you simply take your savings back, untouched. That structure is what makes SAYE a one-way bet rather than a true SIP-style investment.
A Worked Example
SIP: Higher-rate taxpayer, £1,800/yr, 2:1 match
SAYE: £250/month, 5-year term, 20% discount
SIP vs SAYE: Feature by Feature
| Feature | SIP | SAYE |
|---|---|---|
| How you contribute | Pre-tax salary, into shares immediately | Net pay, into a savings account |
| Annual/monthly limit | £1,800/year Partnership Shares | £5–£500/month |
| Employer top-up | Up to 2:1 Matching Shares + £3,600 Free Shares | Up to 20% option discount |
| Downside protection | None — real shares from day one | Full — savings returned if price falls |
| Income Tax/NI on award | None if held 5 years in trust | None, ever, on exercise |
| Capital Gains Tax | Base cost resets after 5 years in trust | Calculated from discounted option price |
| Best suited to | Employees confident in long-term growth | Employees who want upside without risking capital |
Neither scheme is objectively “better” — they solve different problems. SIP rewards conviction and offers a bigger potential uplift through matching. SAYE rewards patience and removes the downside entirely, which is why many UK employees who have access to both choose to run them side by side rather than picking one.
Frequently Asked Questions
Which saves more tax, SIP or SAYE?
It depends on your numbers. SIP gives immediate Income Tax and NI relief plus a possible employer match, which often produces a bigger relief figure for higher-rate taxpayers. SAYE never charges Income Tax or NI on exercise at all, and adds a guaranteed discount, but the relief shows up later and is smaller in absolute terms unless your contribution is large.
Can I have both a SIP and a SAYE scheme?
Yes. Most large UK employers run both, and there’s no restriction on joining each at the same time, subject to each scheme’s own contribution limits.
Is SAYE risk-free?
Your capital is protected — if the share price falls, you get your savings back rather than being forced to buy shares at a loss. The only real cost is the opportunity cost of tying up that money in a savings contract for three or five years.
Do SIP and SAYE shares get taxed the same way?
No. SIP shares avoid Income Tax and NI if held in the trust for five years. SAYE shares never attract Income Tax or NI on exercise, regardless of term, but Capital Gains Tax applies on any later sale above your annual CGT allowance.
What happens to SAYE savings if I leave my job?
You can usually exercise early within six months of leaving for reasons like redundancy, retirement, or ill health, keeping the discount. Voluntary resignation outside that window typically means losing the option to buy at a discount, though your savings are always returned in full.
Explore the Full SIP Calculator Suite
See how each part of your Share Incentive Plan stacks up before comparing it to SAYE.
Disclaimer: This calculator and article are for general guidance only and do not constitute financial or tax advice. Figures are illustrative estimates based on standard HMRC rules for SIP (Schedule 2) and SAYE (Schedule 3) current as of 2026. Tax treatment depends on your individual circumstances and your specific scheme’s rules. Always confirm with your scheme provider or a qualified financial adviser before making decisions.