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How the calculators work

Calculator Methodology

The exact assumptions and formulas behind every calculator on this site, published openly so you can check them.

Current assumptions (2025/26 tax year, last checked 6 April 2025)

AssumptionValueSource
Free shares annual limit£3,600ITEPA 2003, Sch. 2
Partnership shares annual limit£1,800 or 10% of salary, lowerITEPA 2003, Sch. 2
Maximum matching ratio2 matching shares per 1 partnership shareITEPA 2003, Sch. 2
Employee NIC rate (illustrative)8%Confirm current rate before relying on this figure
Full tax-free holding period5 yearsHMRC ETASSUM

Main calculator formulas

partnership_contribution = min(monthly_input × 12, 1800, 10% × salary)
matching_value = partnership_contribution × matching_ratio  (ratio capped at 2)
free_shares_value = min(free_input, 3600)
total_annual_value = partnership_contribution + matching_value + free_shares_value
tax_saved = partnership_contribution × (income_tax_rate + employee_NIC_rate)
future_value = total_annual_value × (1 + growth_rate) ^ years
    

What the calculators do not model

Capital Gains Tax on growth after shares leave the trust, employer-specific plan rules (e.g. non-standard forfeiture terms), and any changes to HMRC rules since our last review date. All figures are estimates for educational purposes only.

Where your data goes

Every calculation happens in your browser. Nothing you type into a calculator is sent to or stored on our servers.

S SIP Guide

Independent, educational UK Share Incentive Plan calculators and guides. Not affiliated with HMRC or any government body.

Calculators

Main SIP Calculator Tax Savings Calculator Partnership Shares Calculator Matching Shares Calculator Free Shares Calculator Holding Period Calculator

Guides

What Is a SIP? SIP Tax Benefits Partnership Shares Explained Holding Period Rules SIP vs SAYE

Company

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© 2026 SIP Guide — Educational estimates only, not financial advice. Rules last checked: 6 April 2025 (2025/26 tax year) Privacy · Cookies · Terms · Disclaimer

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