The SIP is a share plan which enables you to buy Kier shares from your pay before tax is deducted, and for every two shares you buy you get an extra one free capped at £90 per month. It’s a tax efficient way to build up a shareholding in Kier.
Apply nowScan this QR code with your mobile phone to download the app
Scan this QR code with your mobile phone to download the app
To see the differences between Sharesave and SIP go to the Useful documentation section below.
Simply choose to invest between £10 and £150 a month, or you can make lump sum payments as long as your total contributions do not exceed £1,800 in each tax year (or 10% of your salary, whichever is lower).
Your chosen amount will be deducted each month directly from your gross salary, so you won’t pay income tax or NICs on the money you invest.
Your contribution is transferred to EQ and it purchases Kier shares on the stock market (these are called ‘partnership shares’). The free ‘matching shares’, funded by Kier, are also purchased and allocated to your account.
Your shares will be held free of charge on your behalf by Equiniti Share Plan Trustees Limited (the ‘SIP Trustee’) in a trust called the Kier Share Incentive Plan Trust (the ‘SIP Trust’). SIP is a long term investment; to benefit from the full tax savings, your partnership and matching shares need to be held in the SIP Trust for five years and any dividend shares for three years.
The purchase of partnership shares and award of matching shares takes place on or around the 18th of the month. You can sell your partnership shares at any time (although you may forfeit any matching shares associated with them), but if you want to get the full tax benefit from SIP, then you need to keep your shares in the SIP Trust for five years after purchase.
Matching shares cannot be sold until they have been held for the minimum holding period. Dividend shares are also subject to a holding period whilst you are still employed; if you leave, they will be made available for you, but you may have to pay tax on them. Please see the FAQs for information on the holding periods.
Kier will give you one free share (known as a matching share) for every two shares that you buy capped at £90 per month. This increases the value of your investment by 50%.
A further benefit in joining SIP is that you’ll receive any dividends paid by Kier on your partnership and matching shares. These can be paid either in cash or shares (called dividend shares). Whether you receive cash or dividend shares is up to you.
When you acquire your partnership and free matching shares, you will not be subject to any Income Tax or National Insurance contributions on the amount of your contributions deducted from your gross pay to buy partnership shares or the value of the matching shares acquired.
You can join SIP using the Kier Share Plans Portal online or by using the 'EQ Share Plans' app.
You will need your National Insurance Number to access the portal, you can find this on your payslip.
You can download the 'EQ Share Plans' app for both Apple and Android devices.
Once you have downloaded the app, follow the instructions to log in (using your same log in details for the Portal) or register. You will then be able to apply.
Scan this QR code with your mobile phone to download the app
Scan this QR code with your mobile phone to download the app
OR
OR
Visit the Kier Share Plans Portal
Log in and click on the I want to section and follow the instructions.
Visit the Kier Share Plans Portal
Click register and follow the instructions on screen.
If you have a work email address, please use that. You’ll be emailed your activation code.
If you don’t register with your work email and use a personal email address (e.g. @gmail or @hotmail) your code will be posted out to you – but you don’t need to wait for this to apply for SIP.
To complete your SIP application, once you are logged into the portal, in the I want to section, simply follow the instructions. Once you have applied to join SIP, you will receive a confirmation email.
Please be aware that for some people there could be a potential impact on means-tested benefits, e.g. state pension benefits, statutory sick pay, statutory neonatal care and statutory maternity allowance and any others means-tested benefits and/or tax credits.
Further information is set out in the HMRC booklet IR177 which is available from www.gov.uk/government/publications/share-incentive-plans-and-your-entitlement-to-benefits-ir177.
Kier share price can go down as well as up and so you may not get back the amount you contribute. If you are unsure whether to join SIP, you are advised to seek independent financial advice.
You do not have to sell your dividend shares, and you will not lose your dividend shares, if you sell your partnership shares. You can keep your dividend shares in the SIP Trust for as long as you're an employee.
You can stop and start deductions under the SIP or change your monthly deduction at any time. To do so please update us online by logging on to your account at www.kiershareplans.co.uk. Depending on when your instruction is received it may not be possible to process it straight away e.g. due to payroll processing deadlines.
As long as there is enough money paid to you via payroll, EQ will continue to buy shares for you. You have the option to stop contributions or change your contribution amount.
Login to your online account at www.kiershareplans.co.uk at any time to see a detailed view of your account including current shareholding and the value of your shares. You’ll also receive a summary statement each year from EQ confirming the number of each type of share you hold in the SIP
No, you can leave your shares in the SIP for as long as you want while you remain employed by Kier. By leaving your shares in the SIP until you’re ready to sell them direct from the SIP, you will avoid having to pay any Capital Gains Tax on the gain.
The table below shows what could happen if you decide to take your partnership shares out of the SIP Trust before their 5-year holding period has been completed - or if you leave Kier’s employment through resignation, dismissal, or if a fixed term contract comes to an end.
| Shares held from... | If you sell your partnership shares or leave Kier you will... |
| Less than 3 years | Forfeit your matching shares. Have to pay Income Tax and NICs on the sale of your partnership shares. |
| 3-5 years | Keep your matching shares. Have to pay Income Tax and NICs on the lower of the value of your shares when you bought them or sold them. |
Where tax is payable, EQ will calculate this and sell a proportion of your shares to meet this cost. This money will be transferred to Kier to say the tax liability through payroll. The remaining shares will be available to you.
If you leave Kier’s employment, you SIP shares will be removed from the SIP Trust – you will have the choice to keep or sell them and there may be tax payable.
If you leave for any of the following reasons:
All your shares in the SIP Trust will be released to you tax free. You won’t have any Income Tax and NICs liabilities regardless of how long you have held the shares and you will not forfeit any matching shares.
If you leave for any other reason including:
You’ll have to pay Income Tax and NICs on any partnership shares and matching shares that haven’t been held for at least five years from their respective purchase dates at the date of leaving. The Trustees will sell a proportion of your SIP shares to cover the tax liability.
| Shares held from... | If you sell your partnership shares or leave Kier you will... |
| Less than 3 years | Forfeit your matching shares. Have to pay Income Tax and NICs on the sale of your partnership shares. |
| 3-5 years | Keep your matching shares. Have to pay Income Tax and NICs on the lower of the value of your shares when you bought them or sold them. |
In addition you’ll forfeit any matching shares that you haven’t held for three or more years from the date they were awarded.
Regardless of your reason for leaving, any deductions from pay which haven’t yet been used to buy partnership shares will be returned to you but income tax and NICs will be deducted from these monies.
You can take your partnership shares out of the SIP at any time, but you can’t withdraw any matching shares from the SIP until you’ve held them for three or more years from the original award date. If you withdraw any partnership shares within three years of their purchase date, you’ll forfeit the corresponding matching shares.
You will normally have income tax and NICs to pay on any partnership shares and matching shares (outside the three year holding period) you withdraw from the SIP within five years of their original purchase date. Any income tax or NICs liability will be met by selling sufficient shares. You won’t have to pay income tax or NICs on any shares you withdraw from the SIP that have been held for five years or more.
Shares can be sold on or after withdrawal from the SIP trust, subject to the provisions of the Kier Group plc share dealing code (you will have been notified if this applies to you).
If you leave Kier or want to withdraw some shares whilst still employed by Kier you can ask Equiniti Share Plan Trustees Limited to either sell them on your behalf or have the shares transferred into your own name. However, you’ll only be able to transfer shares into your own name whilst still employed once the shares have become tax free.
Once the shares are transferred into your own name you can hold onto them for as long as you like, sell them using a broker of your choosing or transfer them into an ISA. If the ISA transfer takes place within 90 days of withdrawing the shares from the SIP, any gain made on the shares will not count towards your capital gains limits.
Kier will pay all costs associated with the purchase of partnership shares and award of matching shares. The only costs you’ll need to pay are when you come to withdraw shares from the SIP.
A share dealing commission is payable on the sale of shares from the trust and an administration fee is payable if you withdraw your shares and request a share certificate. These charges are subject to change and will be confirmed by EQ when you request to withdraw shares
You can visit the Portal to submit your instruction to release shares. Instructions on how to login to your Portal account can be found in the How do I join? section of this website. If you leave the employment of Kier, the HR Shared Services Centre will notify EQ, who will then write to you confirming the choices available.
Contact EQ on 0371 384 2040 between 8:30 - 17:30, Monday to Friday (excluding public holidays in England and Wales).
