TSEM5440 | Trusts for particular purposes: employment-related trusts: Share Incentive Plans - payments to employees

The trustees should pay any dividends received from the company into the plan’s bank account. They should either pay these to the employees to whom shares have been appropriated or reinvest the cash dividends to acquire more shares for the employees (‘dividend shares’). They should provide the employee with a form R185 (Trust Income) covering the tax year. The trustee should complete the section headed ‘Income entitlement under a trust’.