New job, tax question

[CoffeeGuy]

Hi Everyone,

Just a quick one really. I have a new job and the tax bracket is changing to well into the higher earner bracket. The company I am going to do a SAYE scheme.

What I am wondering is how this is tax efficient because as I understand it, I will still pay higher rate tax, so other than making some money from the share value increase, it has no effect on lowering the tax you pay (Basically I thought that the SAYE and pension came off first and then you get taxed on the rest? I think I may have that wrong but can someone help?

Regards

[s111dpc]

My SAYE share scheme comes out of net rather than gross income as far as I’m aware, so no tax savings.

[2 GKC]

It comes out of your net pay as you contribute but any gains you make on vesting of the options are income tax free and likely to be capital gains tax free too.

If your employer pays interest or bonus on the savings that is tax free too.

[CoffeeGuy]

Thanks guys. That cleared it up for me.

Regards

Edited by CoffeeGuy on Thursday 17th November 21:57