In a call for evidence, the Treasury wants to hear views on Save As You Earn (SAYE) and the Share Incentive Plan (SIP), as it seeks to improve the schemes and expand their use by making it easier for businesses to set them up and offer them to staff.

The Treasury wants to assess whether the schemes’ rules are simple and clear as well as whether they offer enough flexibility to meet individual companies’ needs. It is also keen to find out if the schemes work for lower earners, particularly as there has been a decline in usage and popularity since 2016.

In June 2022, there were a total of 1,030 employee-owned businesses in the UK. The range of schemes cost over £300m a year in tax relief costs.