SIP 2016

[aiden01]

See what you're getting at there Argy. Agree that you'll often get someone just writing the "New" address on the front of someones envelope. Of course I'll deliver them, and I'll then put one of those "The Home Office suggest you use Royal Mail Redirection Service to avoid Fraud....." stickers on.

Once I've explained what that means they often say, "Never gave Fraud any thought.... think I'd better set up a Redirection"! The obvious exeption would be if it's your Mum & Dad redirecting your mail....I think you could probably trust them?

IMO we need to be making money, if we want to getting pay rises and bonuses, I may be labouring the point but I'm sure we all know Posties who run around the office slipping mail into other peoples frames, for customers who have moved from their walk. Just because they can't be bothered to deliver it as addressed?

or else they just send them back to mc as missorts.

[HarryPoorer]

Wandle said .....This is because the SIP Scheme rules dictate that you pay Tax/NI based on whichever is lower: the share price on the day you sell, or the share price at which the shares closed on the first day of trading (the ‘Initial Market Value’). As you may recall, the share price of Royal Mail shot up significantly from the 330p flotation price on the first day of trading, closing at 489p, causing a headache for the trustees of our SIP scheme. Under government rules, employees can only be awarded Free Shares to a maximum value of £3000 in any single financial year. The free shares to which full-time employees were entitled upon flotation of Royal Mail amounted to 729 shares each, but it was not possible to allocate the full entitlement without breaching the £3000 limit. So, 613 shares were awarded to full-time employees, which stayed within the SIP rules because 613 x 489p = £2997.57

So, selling your 613 free shares in October this year, means that - with the share price currently above this 489p threshold - you will be liable for Tax/NI on the ‘Initial Market Value’, not the (higher) share price on the day you sell. With the proceeds of sale being subject to 20% Income Tax and 11% National Insurance, that amounts to a loss to you (and a tax take for HM Government) of £929.25. That is a lot of ‘free’ money to squander. It is why I firmly believe, if your individual circumstances allow you to, it would be much better to wait until October 2018 before selling your shares. A further thing to consider is this: if you hang on until 2018, you will receive dividends on those 613 shares, in December 2016, July 2017, December 2017, and July 2018. There are no guarantees, but, most companies pursue a policy of growing their dividend payments year-on-year. Given that Royal Mail paid 22.1p per share (comprising payments of 7p and 15.1p per share) for the 2015/2016 Financial Year, it is not a stretch to anticipate that hanging onto your free shares for two more years would mean you receive at least 44.2p per share in dividend payments, amounting to almost £271, on this tranche of 613 shares.

So, it’s clear to me that,...... Well I haven't drunk too much today but it's Not clear to me!

Anyway , while they keep giving us shares, what about the productivity bonus scheme we never got!!

[k979aaa]

Wandle said .....This is because the SIP Scheme rules dictate that you pay Tax/NI based on whichever is lower: the share price on the day you sell, or the share price at which the shares closed on the first day of trading (the ‘Initial Market Value’). As you may recall, the share price of Royal Mail shot up significantly from the 330p flotation price on the first day of trading, closing at 489p, causing a headache for the trustees of our SIP scheme. Under government rules, employees can only be awarded Free Shares to a maximum value of £3000 in any single financial year. The free shares to which full-time employees were entitled upon flotation of Royal Mail amounted to 729 shares each, but it was not possible to allocate the full entitlement without breaching the £3000 limit. So, 613 shares were awarded to full-time employees, which stayed within the SIP rules because 613 x 489p = £2997.57

So, selling your 613 free shares in October this year, means that - with the share price currently above this 489p threshold - you will be liable for Tax/NI on the ‘Initial Market Value’, not the (higher) share price on the day you sell. With the proceeds of sale being subject to 20% Income Tax and 11% National Insurance, that amounts to a loss to you (and a tax take for HM Government) of £929.25. That is a lot of ‘free’ money to squander. It is why I firmly believe, if your individual circumstances allow you to, it would be much better to wait until October 2018 before selling your shares. A further thing to consider is this: if you hang on until 2018, you will receive dividends on those 613 shares, in December 2016, July 2017, December 2017, and July 2018. There are no guarantees, but, most companies pursue a policy of growing their dividend payments year-on-year. Given that Royal Mail paid 22.1p per share (comprising payments of 7p and 15.1p per share) for the 2015/2016 Financial Year, it is not a stretch to anticipate that hanging onto your free shares for two more years would mean you receive at least 44.2p per share in dividend payments, amounting to almost £271, on this tranche of 613 shares.

So, it’s clear to me that,...... Well I haven't drunk too much today but it's Not clear to me!

Anyway , while they keep giving us shares, what about the productivity bonus scheme we never got!!

But to the detriment of our pension scheme at the end of the day!

[RobertT]

But to the detriment of our pension scheme at the end of the day!

If the Royal Mail hadn’t been privatised the company would still have a £10+ Billion deficit to pay off and the RMPP would have almost certainly already been closed by now.