Share purchase as part of a new job
Discussion
Hi All,
I'm in the latter stages of a job application process, and I've been reading through the perks of the package, which appear to include a couple of share purchase options.
1 appears to be buying shares at a discounted rate, and then the company double whatever you buy, with a maximum purchase of £150 PCM.
My understanding is these purchases occur prior to paying tax, and as the new role would be at the 40% tax band, it seems silly not to make use of things like this (much like making the maximum pension contributions of 5%, with the employer paying in 10%).
Am I being blind&stupid , or is this absolutely something I should do if we can afford it?
I'm in the latter stages of a job application process, and I've been reading through the perks of the package, which appear to include a couple of share purchase options.
1 appears to be buying shares at a discounted rate, and then the company double whatever you buy, with a maximum purchase of £150 PCM.
My understanding is these purchases occur prior to paying tax, and as the new role would be at the 40% tax band, it seems silly not to make use of things like this (much like making the maximum pension contributions of 5%, with the employer paying in 10%).
Am I being blind&stupid , or is this absolutely something I should do if we can afford it?
conanius said:
Hi All,
I'm in the latter stages of a job application process, and I've been reading through the perks of the package, which appear to include a couple of share purchase options.
1 appears to be buying shares at a discounted rate, and then the company double whatever you buy, with a maximum purchase of £150 PCM.
My understanding is these purchases occur prior to paying tax, and as the new role would be at the 40% tax band, it seems silly not to make use of things like this (much like making the maximum pension contributions of 5%, with the employer paying in 10%).
Am I being blind&stupid , or is this absolutely something I should do if we can afford it?
Hi everyone, Had a verbal offer today and looking like we may well take it. Would be great to know thoughts on the above prior to accepting. I'm in the latter stages of a job application process, and I've been reading through the perks of the package, which appear to include a couple of share purchase options.
1 appears to be buying shares at a discounted rate, and then the company double whatever you buy, with a maximum purchase of £150 PCM.
My understanding is these purchases occur prior to paying tax, and as the new role would be at the 40% tax band, it seems silly not to make use of things like this (much like making the maximum pension contributions of 5%, with the employer paying in 10%).
Am I being blind&stupid , or is this absolutely something I should do if we can afford it?
I got the maximum purchase wrong, and it was actually £125. By using salary calculator it looks like it costs £75 PCM for £250 of shares. This seems to be a total no brainer. Right?
Whats the deal with selling the shares, is there anything to stop us selling every 12 months?
Well worth while doing assuming your employer is a successful company.
You have £11000 capital gains tax allowance so you have a few years before cgt becomes an issue.
Usually, you are locked in to these plans for a period of time e.g. 3 or 5 years after which time the shares are granted to you to sell or hold as you wish.
You have £11000 capital gains tax allowance so you have a few years before cgt becomes an issue.
Usually, you are locked in to these plans for a period of time e.g. 3 or 5 years after which time the shares are granted to you to sell or hold as you wish.
conanius said:
Thanks for the reply. The company regularly features in the top 20 in the world as a brand, so I think it is worth saying it is successful.
So does my old car company - Aston Martin - indeed, it's regularly at *1 or *2 on the list. Would I invest in them? Nope.I use up my son-in-law's EADs allocation through Airbus and it is definitely 5 years before they can be withdrawn tax free. But, hey, it's his tax bill
Jockman said:
So does my old car company - Aston Martin - indeed, it's regularly at *1 or *2 on the list. Would I invest in them? Nope.
I use up my son-in-law's EADs allocation through Airbus and it is definitely 5 years before they can be withdrawn tax free. But, hey, it's his tax bill
Once things have sorted themselves out you'll see its one you'd invest in I use up my son-in-law's EADs allocation through Airbus and it is definitely 5 years before they can be withdrawn tax free. But, hey, it's his tax bill
I won't be naming the company till I start... if I take it ! Generally it's a good idea to take up these schemes. Of course shares can go down as well as up blah blah but the discount, or 'we'll match yours' incentives generally make them a no-brainier.
Plus they're not easy to cash in which stops you spunking the lot on a drunk eBay purchase, which makes them a good long term savings option.
I know at least two people who will retire early thanks to twenty years on share incentive schemes....
Plus they're not easy to cash in which stops you spunking the lot on a drunk eBay purchase, which makes them a good long term savings option.
I know at least two people who will retire early thanks to twenty years on share incentive schemes....
Jimboka said:
Sounds like a scheme I'm in. The 3 & 5 year rules as mentioned before are there, but seems a good thing.
Sure shares can crash but £75 a month for £250 worth is a sound investment IMHO
This is my thought. £75 a month could go on beer or smokes for some people, we don't drink or smoke, so its a 'free' risk. If the company has crashed so badly we've lost our initial investment... I think I'll be more worried about my job !Sure shares can crash but £75 a month for £250 worth is a sound investment IMHO
I have something similar, but not quite as lucrative.
I can put in up to 6% of my salary, of which £125 per month is tax free (rising to £150 this tax year though) the balance is taxable as normal. For every £1 I put in the company puts in 50p. Shares are bought every month and the 3/5 year rules apply. Obviously dividends are paid too which I elect to use to buy more shares.
The company I work for is a large US corporation, the scheme has done me very over the years!
I can put in up to 6% of my salary, of which £125 per month is tax free (rising to £150 this tax year though) the balance is taxable as normal. For every £1 I put in the company puts in 50p. Shares are bought every month and the 3/5 year rules apply. Obviously dividends are paid too which I elect to use to buy more shares.
The company I work for is a large US corporation, the scheme has done me very over the years!
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