One Team,
One Plan
Start
Together we are HomeServe
Welcome
Welcome to One Plan, our Global Share Incentive Plan (or
SIP, for short) which enables everyone at HomeServe to
become an owner of our company. It’s an opportunity for
you to buy shares in HomeServe and get extra shares for
free. By becoming a shareholder you’re investing in yourself
and your colleagues, planning for the future and helping
build the HomeServe of tomorrow.
One Team,
One Plan
Together w
e
What
is it?
How does
it work?
What it means
for your pay
Are there
any risks?
Selling your
shares
One Plan
over time
Joining
One Plan
are HomeS
erve
What happens
if I leave?
Glossary
If you need
more info
One Team, One Plan
What is it?
For every two HomeServe shares you buy through One Plan, we’ll give you one share
completely free. There are no complicated application forms and no fees or charges
to buy shares. It’s just a simple way to invest for your future.
You can invest from £10 to £150 each month (up to £1,800 a year or 10% of your
annual salary before tax, if lower). You’re not locked into paying the same amount for
any length of time either. If you want to change your investment one month or not
contribute anything at all, you can. You’re in control.
Seeds
Key points
•Buy
shares every month from
before-tax pay
•Invest £10 to £150 a month
•Get one share free for every
two you buy
•Adjust your monthly
payments when you want
•One Plan benefits are
potentially all tax-free
(more later!)
SeedsSeeds
What
is it?
How does
it work?
What it means
for your pay
Are there
any risks?
Selling your
shares
One Plan
over time
Joining
One Plan
What happens
if I leave?
Glossary
If you need
more info
One Team, One Plan
How does it work?
Invest
1. You choose how much to invest in One Plan.
• You can invest £10 to £150 each month (up to £1,800 a year or 10% of your annual salary before tax, if lower).
•This amount is taken from your gross pay, before Income Tax and National Insurance is deducted.
2.Computershare, the trustee and administrator of One Plan, uses the money you
invest to buy HomeServe shares for you.
• These are called Partnership Shares.
• Partnership Shares are bought once a month on the Award Date.
• There are no transaction fees or commissions to pay when your money is invested.
•Only whole shares can be bought, so any money left over will be rolled over to the next month.
Seeds
3.You can change the monthly amount you invest in One Plan at any time.
• Just log into your account online and tell us the changed monthly amount.
• If things are a bit tight you can stop or reduce your contributions.
•If you’re flush one month you can invest more, up to the £150 monthly limit. Any changes will be applied in the next available payroll.
What
is it?
How does
it work?
What it means
for your pay
Are there
any risks?
Selling your
shares
One Plan
over time
Joining
One Plan
What happens
if I leave?
Glossary
Own >
Grow
If you v
need
est
<
In
more info
< Ow
One Team, One Plan
How does it work?
Seeds
Own
Your One Plan shares are held in a trust managed by Computershare.
• You don’t need to do anything – your shares will be held securely.
• You can see how many shares you have and what they’re currently worth by logging into your
account online.
• There are no annual charges.
Own >
Grow >
Own >
Grow >
< Invest
< Own
< Invest
< Own
What
is it?
How does
it work?
What it means
for your pay
Are there
any risks?
Selling your
shares
One Plan
over time
Joining
One Plan
What happens
if I leave?
Own >
Grow >
Own
<Glossary
Invest
If you need
more info
< Own
< Inv
wn >
nvest
One Team, One Plan
How does it work?
Grow
1. Your investment can benefit you in three ways:
• Through your shares growing in value (but remember that share prices can go down as well as up).
• Through receiving additional free shares.
• Through receiving dividends.
2. For every two Partnership Shares bought, you get one share free.
• These free shares are called Matching Shares.
• Matching Shares cannot normally be sold or withdrawn within three years of the Award Date.
• Matching Shares are worth the same as Partnership Shares – the only difference is that if you sell or
withdraw your Partnership Shares within three years of the Award Date, you will normally forfeit the related Matching Shares.
3. As you’re a shareholder in HomeServe, you’ll receive any dividends that we pay.
• Dividends are dependent on the performance of our company. If we do well during our financial year, we may decide to pay a dividend to reward our shareholders
for backing us.
• We usually decide whether to pay a dividend twice a year, in May and November. The amount you would receive depends on the number of shares you hold.
• Dividends on One Plan shares are automatically re-invested in additional HomeServe shares, called Dividend Shares. Their Award Date is when they are purchased.
• You need to hold your Dividend Shares for three years before you can sell them.
Grow >
Own >
Grow >
Grow Contd
< Own
< Invest
< Own
Grow Contd
What
is it?
How does
it work?
What it means
for your pay
.>
.>
Are there
any risks?
Selling your
shares
One Plan
over time
Joining
One Plan
What happens
if I leave?
Glossary
If you need
more info
One Team, One Plan
How does it work?
Grow Contd.
4.The earliest that you can normally sell or withdraw your shares depends on the type
of shares:
• Partnership Shares – at any time (but within three years of the Award Date the related Matching Shares
are normally forfeited).
• Matching Shares and Dividend Shares – three years after the Award Date.
5.If you sell or withdraw shares, depending on the type of shares and how long you have
held them, you may have to pay tax:
• Partnership Shares and Matching Shares – tax if shares held for less than five years from the Award Date.
• Dividend Shares – tax if shares held for less than three years from the Award Date.
More information on tax is provided in ‘Selling your shares’.
6. There are no charges other than stockbrokers’ commission if you sell shares – the current rate is 0.35% subject to a minimum of £20.
7.To sell your shares just log into your account online and tell Computershare, who will sell them as soon as possible providing the
London Stock Exchange is open. Computershare will do all the work and pay sale proceeds to your bank account.
8.You can also give online instructions to withdraw your shares from the trust and receive a share certificate or transfer them to another
investment or share trading account (but note that you may have to pay tax).
< Grow < Grow
What
is it?
How does
it work?
What it means
for your pay
Are there
any risks?
Selling your
shares
One Plan
over time
Joining
One Plan
What happens
if I leave?
Glossary
If you need
more info
One Team, One Plan
What it means for your pay
What does investing in Partnership Shares mean for your pay?
To show how investing in One Plan works, let’s look at George. His salary is £18,000 a year (£1,500 a month). His maximum income tax rate is the Basic Rate
(20%) on his earnings over £11,000 (his personal allowance for the tax year to 5 April 2017 - this will rise to £11,500 from 6 April 2017). He also pays National
Insurance contributions at 12% on his earnings over a minimum threshold (£672 per month for the tax year to 5 April 2017). George decides to invest £70 a
month in One Plan.
Before joining One Plan
Investing £70 a month
Monthly gross salary (or pre-tax pay)
Income Tax @ 20%
National Insurance @ 12%
Net salary (after tax)
Monthly gross salary (or pre-tax pay)
One Plan investment
Income tax @ 20%
National Insurance @ 12%
Net salary (after tax)
£1,500.00
-£116.67
-£99.36
£1,283.97
£1,500.00
-£70.00
-£102.67
-£90.96
£1,236.37
Although he invests £70 a month (£840 over a tax year), George’s take-home pay goes down by only £47.60 a month (£571.20 over a year).
When you include the free Matching Shares, this means George gets shares worth £105 every month, for only a £47.60 deduction from his take-home pay.
What
is it?
How does
it work?
What it means
for your pay
Are there
any risks?
Selling your
shares
One Plan
over time
Joining
One Plan
What happens
if I leave?
Glossary
If you need
more info
One Team, One Plan
Are there any risks?
As with any investment in shares, there are risks with One Plan.
The value of HomeServe shares can go down as well as up.
When you invest in One Plan, you’re buying shares in HomeServe. These shares are traded on the London Stock Exchange and, like any publicly traded shares, their
value can go down as well as up.
1.
What shares in One Plan are worth
The shares you buy one month could be worth more or less in the future. It’s important to understand that the value of shares < Grow
ultimately depends on the balance of those wanting to buy and sell shares. This can be affected not just on how well the company
has done, but also by how well investors think it will do in the future and external factors (e.g. interest rates, competitors, regulation).
2.
What your money will buy
Even if you invest the same amount of money in One Plan every month, the number of shares it buys will change. If the share
price goes up (increasing in value), your monthly investment will buy fewer shares. If it goes down, it will buy more shares.
An advantage that you have as an investor in One Plan is that you get one free share for every two you buy (not something ordinary investors get). If you hold
your Partnership and Matching Shares for five years, you don’t pay any tax on the money you invested or the value of the Matching Shares. This means that,
depending on the circumstances, your investment effectively has some protection from any fall in HomeServe’s share price.
1
2
8
9 10 11 12 13 14
3
4
5
6
7
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
What
is it?
How does
it work?
What it means
for your pay
Are there
any risks?
Selling your
shares
One Plan
over time
Joining
One Plan
What happens
if I leave?
Glossary
If you need
more info
< Grow
One Team, One Plan
Selling your shares
You can sell (or withdraw) your Partnership Shares whenever you want. But the
longer you hold onto them, the bigger the potential benefit.
•If you sell them within the first three years, you forfeit the Matching Shares
you received with them.
•If you hold onto your Partnership Shares for over three years, the Matching
Shares are yours to do whatever you want with.
•If you keep your Partnership Shares and Matching Shares for five years (or
three years for Dividend Shares), any sale or withdrawal is completely free
of income tax and National Insurance. The circumstances in which tax may
normally be payable are summarised in the table to the right. Different
treatment can apply if you leave HomeServe, see ‘What happens if I leave?’.
Partnership Shares
Matching Shares
Dividend Shares
Purchase/Award
No tax
No tax
No tax
Sale or withdrawal
within 3 years of
the Award Date
Income tax and
National Insurance
on the value of
shares on sale or
withdrawal.
Sale or withdrawal
not normally
allowed.
Sale or withdrawal
not normally
allowed.
Income tax and
National Insurance
on the lower of the
value of shares on
sale or their value
when awarded.
No tax
The related
Matching Shares will
also be forfeited.
Sale or withdrawal
at least three years
but less than five
years from the
Award Date
Income tax and
National Insurance
on the lower of the
value of shares on
sale or withdrawal
and the amount
invested.
Irrespective of when your shares are sold from One Plan, there will be no Capital Gains Tax
on any growth in their value. If you withdraw them, you will be deemed to acquire them at
that time for market value when working out the gain or loss on any later disposal.
Please note, the tax information provided here is for general guidance only. For specific
guidance, please consult a qualified tax adviser.
What
is it?
How does
it work?
What it means
for your pay
Are there
any risks?
Selling your
shares
One Plan
over time
Joining
One Plan
What happens
if I leave?
Glossary
If you need
more info
One Team, One Plan
< Grow < Grow
One Plan over time
September 2016
George’s second deduction takes place
in September. When George’s shares are
purchased in October, he receives another
12 Partnership Shares. The share price is now
£5.50, the cost of the shares is £66 and £4 is
carried forward to be added to next month’s
investment. He also gets 6 Matching Shares.
July 2016
George (a basic
rate taxpayer)
decides to invest
£70 a month in
One Plan.
2016
This timeline shows how George might invest in One Plan through to him cashing in his investment.
Remember that this is just an example and that share prices can go down as well as up.
3
4
5
6
7
15 16 17 18 19 20 21
22 23 24 25 26 27 28
October 2016
George gets another 12 Partnership Shares
in November and 12 in December, along with
12 more Matching Shares. After four months’
deductions George now has 75 shares (50
Partnership Shares and 25 Matching Shares).
February 2018
Money’s a little tight,
so George takes a
three month break
from making his
regular investment.
2018
August 2016
George’s first pay deduction. The share
price is £5 when George’s shares are
purchased the following month. George
receives 14 Partnership Shares. He also
gets 7 free matching shares.
How does
it work?
2
9 10 11 12 13 14
29 30 31
2017
What
is it?
1
8
January 2019
George gets a pay
rise and decides
to increase
his monthly
investment to £80.
2019
May 2018
George starts investing
£70 a month again.
What it means
for your pay
Are there
any risks?
Selling your
shares
November 2021
The share price is now £7 (remember the share price can go
down as well as up). George decides to sell all the shares
he can without paying any income tax. These are the 38
Partnership Shares he bought in September, October and
November 2016, together with the 19 free Matching Shares. He
sells all 57 shares for £399 and treats himself with the money.
The amount he invested from his take home pay was £142.80.
2020
2021
September 2019
It’s been three years since George’s first Partnership Share
investment. Now he can sell the 14 Partnership Shares he
bought in September 2016 without forfeiting the 7 Matching
Shares he was awarded at the same time. However, he
decides to keep them because he knows he can receive them
completely tax-free if he waits another two years.
One Plan
over time
Joining
One Plan
What happens
if I leave?
Glossary
If you need
more info
One Team, One Plan
Joining One Plan
< Gr
You can join One Plan, check your shares and sell them at www.computershare.com/HomeServe
Joining
1. Sign in with your User ID and PIN
2.Select Portfolio and then Apply
3. Enter the amount you’d like to invest every month
4. Confirm and you’re done
5. Your application will be processed for the next available payroll
Join One Plan
by visiting
www.computershare.com/
HomeServe
Changing your monthly investment
1. Sign in with your User ID and PIN
2.Select Contributions and then Change
3. Enter the new amount you’d like to invest every month
4. Changes will take effect in the next available payroll
Selling shares
1
2
3
4
5
6
When can I join?
7
8 9 10 11 12 13 14
1. Sign in with your User ID and PIN
15 16 17 18 19 20 21
2.Select Portfolio and then Transact
22 23 24 25 26 27 28
3.Select Sell and follow the instructions
29 30 31
4. Enter your PIN again to confirm your sale
5.The proceeds (less selling costs and any income tax and National Insurance) will be
included in your next pay
What
is it?
How does
it work?
What it means
for your pay
Are there
any risks?
Selling your
shares
One Plan
over time
You can join One Plan at any time, just as long as you’ve
completed three months’ continuous service. You’ll be
sent your User ID automatically and your PIN will be sent
separately soon afterwards.
Joining
One Plan
What happens
if I leave?
Glossary
If you need
more info
One Team, One Plan
What happens if I leave HomeServe?
Reason for leaving
If you leave HomeServe:
Period since the Award Date when shares are deemed to leave
One Plan (the date you leave or the next Partnership Share
investment date if you leave after a pay deduction but before
the investment takes place)
•You won’t be able to carry on investing in One Plan (except for any Partnership Share
investment using money already deducted from your pay).
•For tax purposes HMRC will deem all your shares to leave One Plan on the day you
leave (or the next Partnership Share investment date using money already deducted
from your pay).
Resignation or dismissal
•You will have the following choices (other than for any Matching Shares that are
forfeited – see below):
Sell shares
Sell them all – if any tax is due on the shares being deemed to leave One Plan, this
will normally be withheld from the proceeds.
Keep shares
Have them transferred into your name (you will be sent a share certificate).
Death, injury, disability,
redundancy, retirement,
employer leaving the HomeServe
Group or a TUPE transfer (on
a business being transferred
outside the HomeServe Group).
How does
it work?
What it means
for your pay
Are there
any risks?
Selling your
shares
At least three but
less than five years
At least five years
Partnership Shares:
Income tax and
National Insurance
Contributions (NICs)
on value of shares on
deemed leaving date
Partnership Shares:
Income tax and NICs
on lower of value of
shares on deemed
leaving date and
amount invested
No tax liability
Matching Shares:
Forfeited
Matching Shares:
Income tax and
NICs on value of
shares on deemed
leaving date
Dividend Shares:
Potentially, income
tax on the original
dividend amount (as
though paid at the
time of leaving)
Sell enough to pay any tax that is due and keep the remainder (see below).
What
is it?
Within three years
One Plan
over time
Dividend Shares:
No tax liability
No tax liability
Joining
One Plan
What happens
if I leave?
Glossary
If you need
more info
One Team, One Plan
Glossary
Administrator – Computershare. They buy shares in HomeServe on your
behalf and handle the day-to-day management of the plan.
Award Date – The date Partnership Shares or Dividend Shares are bought or
Matching Shares are awarded.
Basic rate – The rate of income tax (currently 20%) payable on taxable
income up to a threshold (£32,000 for the tax year to 5 April 2017). People
start paying this on income over the personal allowance of £11,000.
Computershare – One of the UK’s largest share plan administrators and
registrars. They maintain HomeServe’s register of shareholders.
Dividend Shares – Shares bought for you using dividends paid on your One
Plan shares.
London Stock Exchange – The stock market in London, England, that
HomeServe shares are traded on.
Matching Shares – Free shares you get when you buy Partnership Shares.
You get one Matching Share for every two Partnership Shares, but you must
normally hold the Partnership Shares for at least three years to be able to
keep the Matching Shares.
What
is it?
How does
it work?
What it means
for your pay
Are there
any risks?
Selling your
shares
National Insurance – Normally charged at 12% on monthly earnings
between £672 and £3,583 until you reach state pension age. 2% is paid on
earnings over £3,583 a month.
Partnership Shares – Shares bought with your monthly investment from
before-tax pay.
PIN – The number you will need to set up when logging into the One Plan
website at www.computershare.com/HomeServe. It will be sent to you
separately from your User ID.
Trust –A legal arrangement managed by Computershare to hold One Plan
shares on behalf of participants in One Plan.
Trustee – Computershare, which holds shares on behalf of One Share
participants.
User ID – Your User ID will be sent to you once you’re eligible to join One Plan.
You’ll need it to log into the One Plan website at
www.computershare.com/HomeServe
One Plan
over time
Joining
One Plan
What happens
if I leave?
Glossary
If you need
more info
One Team, One Plan
If you need more information
If you’ve got any questions about One Plan, get in touch with our specialist team
at Computershare.
Phone: 0370 707 1053*
Email: [email protected]
Web: www.computershare.com/HomeServe
Write: Computershare, The Pavilions, Bridgwater Road, Bristol, BS99 6AP
*The Computershare team is available Monday to Friday, 8:30am to 5:30pm.
Calls cost the same as calling an 01 or 02 number. If you have a “free minutes”
call package, check with your provider that 03 numbers are included.
What
is it?
How does
it work?
What it means
for your pay
Are there
any risks?
Selling your
shares
There are risks associated with any investment in shares. If you’re
not sure whether One Plan is right for you, you should talk to an
independent financial adviser before investing in it.
This brochure is intended as an introductory guide to the
HomeServe SIP only. The HomeServe SIP is governed by a formal
Trust Deed and Rules, which is available on request. In the event
of any inconsistency between this guide, the Trust Deed and Rules
and any applicable legislation, the Trust Deed and Rules and any
applicable legislation will prevail. HomeServe reserves the right
to amend the HomeServe SIP rules and to suspend or terminate
the HomeServe SIP at any time.
One Plan
over time
Joining
One Plan
What happens
if I leave?
Glossary
If you need
more info
129NFK D13