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&#39Staff are missing out on £350m in profit-share plans&#39

UK workers are missing out on £350m in possible tax breaks on employee share plans, according to IFA Promotion.

IFAP says this amount could be just the tip of the iceberg of what employees could save from tax breaks in profit-share schemes.

It points out if all staff currently involved in such a scheme invested just half of the £3,000 tax-free investment which is allowed under the Government&#39s share incentive plans then it would hit the £350m mark.

But IFAP chief executive David Elms warns that it may not be appropriate for all staff to invest their maximum share allowance in a single company and urges people to seek financial advice.

The profit-share scheme allows staff to buy up to £3,000 of their employer&#39s shares tax-free. It is not widespread in the UK, with only 7,610 companies taking part and many employees within these firms have not signed up.

Elms says: “The Government&#39s share incentive plan offers generous benefits to employees investing in their own companies. Despite the Inland Revenue&#39s attempts to raise awareness of these schemes, a substantial amount of tax is being wasted by not taking advantage of them.”

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