help with shares

[governor13]

hello just wondering if we cash out the first allocation of shares in October does this add to your gross annual wage or will it be a separate payment , the reason I'm asking is I'm currently having to pay child support and obviously the more I earn the more I pay , just seeing if anyone had any info theycan help me with thanks.

[paulj3001]

It won't be paid with your wages it will be a separate payment into you bank the same as dividends.

[Andy_07]

If we cash out how long is the procedure likely to take ? Boy in my work is saying you have to find a person who is willing to take them off your hands first then after that it could take weeks to finalize

[TrueBlueTerrier]

If we cash out how long is the procedure likely to take ?

On line - Hours to a week depending how busy they are

Postal a week or two.

Boy in my work is saying you have to find a person who is willing to take them off your hands first then after that it could take weeks to finalize

He is wrong. When you indicate to your broker (Equiniti) they will offer them on the open market.

Its like selling a 2nd hand car, you don't go looking for buyers, you advertise (tell broker) and the buyers come looking for you.

[windermeredave]

After October 15th I can see lots of guys looking to get rid of all their shares. so the market could be awash with them. I can see quite a delay in getting the cash. I`m keeping mine for a while because with all that selling it looks likely the value will drop significantly.

[RobertT]

After October 15th I can see lots of guys looking to get rid of all their shares. so the market could be awash with them. I can see quite a delay in getting the cash. I`m keeping mine for a while because with all that selling it looks likely the value will drop significantly.

They won’t be able to sell all their shares, just the 613(full time) they were given in October 2013.

I know it’s a personal decision and the shares were free in the first place, but the tax and NI payable when selling that first tranche is likely to be about £960. That’s a lot of money to give to the tax man when you don’t have to. Plus you’ll lose about £140 per year in dividend payments.

I’m planning on keeping mine for the foreseeable future.

[Andy_07]

After October 15th I can see lots of guys looking to get rid of all their shares. so the market could be awash with them. I can see quite a delay in getting the cash. I`m keeping mine for a while because with all that selling it looks likely the value will drop significantly.

They won’t be able to sell all their shares, just the 613(full time) they were given in October 2013.

I know it’s a personal decision and the shares were free in the first place, but the tax and NI payable when selling that first tranche is likely to be about £960. That’s a lot of money to give to the tax man when you don’t have to. Plus you’ll lose about £140 per year in dividend payments.

I’m planning on keeping mine for the foreseeable future.

WOW i never knew the tax man would get that much ! I thought selling the 613 shares and after paying tax and NI you were looking at a grand in your hand after subtractions

[RobertT]

WOW i never knew the tax man would get that much ! I thought selling the 613 shares and after paying tax and NI you were looking at a grand in your hand after subtractions

The amount of Income Tax(20%) and National Insurance(12%) that’s payable is worked out as the lower of:

The market value at the time they are allocated
Or
The market value when you remove them from the SIP(sell them)

The share price was £4.89 when the first batch of 613 was handed out, while the price at the time of writing this is £5.06. So the ‘current’ value of those shares is £3,101, but the amount that is assessed for tax and NI is a bit less at £2,997(4.89 x 613). They’ll be dealing costs of around £20 I think, so based on todays price, the amount you’ll actually see in your pocket should be about £2,121.

[Marke87]

I've just seen this on the gov.uk website (https://www.gov.uk/tax-employee-share-s ... der-shares" onclick="window.open(this.href);return false;)


6. Employee shareholder shares

To be an employee shareholder, you must own shares in your employer’s company that were worth at least £2,000 when you got them.

You won’t usually pay:

Income Tax or National Insurance on the first £2,000 worth of employee shareholder shares
Capital Gains Tax on employee shareholder shares worth up to £50,000 when you got them, if you sell them



Would this count for us?

[RobertT]

We own our shares via a Share Incentive Plan(SIP) which is different to Employee Shareholder Shares.

There’s more info on the gov.uk website here: https://www.gov.uk/tax-employee-share-schemes/overview" onclick="window.open(this.href);return false;

[rambo1]

WOW i never knew the tax man would get that much ! I thought selling the 613 shares and after paying tax and NI you were looking at a grand in your hand after subtractions

The amount of Income Tax(20%) and National Insurance(12%) that’s payable is worked out as the lower of:

The market value at the time they are allocated
Or
The market value when you remove them from the SIP(sell them)
The share price was £4.89 when the first batch of 613 was handed out, while the price at the time of writing this is £5.06. So the ‘current’ value of those shares is £3,101, but the amount that is assessed for tax and NI is a bit less at £2,997(4.89 x 613). They’ll be dealing costs of around £20 I think, so based on todays price, the amount you’ll actually see in your pocket should be about £2,121.

Unless you are absolutely desperate for the cash you would be a looney to want to sell untill at least five yrs is up. Keep hold for the income unless the business looks like going bust, and if that's the case you've got bigger problems than five grands worth of shares to worry about.

[Andy_07]

If we cash out how long is the procedure likely to take ?

On line - Hours to a week depending how busy they are

Postal a week or two.

Boy in my work is saying you have to find a person who is willing to take them off your hands first then after that it could take weeks to finalize

He is wrong. When you indicate to your broker (Equiniti) they will offer them on the open market.

Its like selling a 2nd hand car, you don't go looking for buyers, you advertise (tell broker) and the buyers come looking for you.

So will the potential buyer pay face value for what they will be worth at that moment in time or will they chance their hand and offer you less than what they are worth?

[TrueBlueTerrier]

So will the potential buyer pay face value for what they will be worth at that moment in time or will they chance their hand and offer you less than what they are worth?

They won't offer you anything.

The broker will put them on the open market and probably sell them as part of a job lot. It's quite complicated but the broker will offer them at market price or more, and will wait for a buyer to offer to purchase all the brokers shares (with yours in them) who is willing to pay that price. They are then sold and you eventually get the value of the shares at the price they were sold at, less tax, NI and brokers fees, as appropriate.

That's the least complicated way I can describe it but for a deeper anaylsis:

[Andy_07]

So will the potential buyer pay face value for what they will be worth at that moment in time or will they chance their hand and offer you less than what they are worth?

They won't offer you anything.

The broker will put them on the open market and probably sell them as part of a job lot. It's quite complicated but the broker will offer them at market price or more, and will wait for a buyer to offer to purchase all the brokers shares (with yours in them) who is willing to pay that price. They are then sold and you eventually get the value of the shares at the price they were sold at, less tax, NI and brokers fees, as appropriate.

That's the least complicated way I can describe it but for a deeper anaylsis:

Thanks for taking the time to clear that up .

[nigelbeans]

After October 15th I can see lots of guys looking to get rid of all their shares. so the market could be awash with them. I can see quite a delay in getting the cash. I`m keeping mine for a while because with all that selling it looks likely the value will drop significantly.

I wonder if the sell pressure would be enough to drop the price significantly...

Perhaps it'd be better to buy as much as possible while people are selling, wait a while, then sell them?