Attachment of Earnings and Cashing in Shares

[Theghost]

No doubt alot of people are now thinking about the 15th October,The date when we can cash our first allocation of shares,I dont mind paying the tax and insurance,In my eyes its money for nothing and will be using it on a little holiday.

I think i am posting a good topic below that some people should be made aware of.

Just something that was brought to my attention today and wondered if anyone could clarify.

When we sell our shares through equiniti,For example the shares are worth £2500,This £2500 (Minus affinini's £45 fee) is then sent to Royal Mail who themselves deduct the Tax and National insurance and the remainder is included in your next weeks wage.

A few of us were chatting about this before work today,Everyone was fine with this way of doing things until one said "What if you have a attatchment of earnings"
It works out that if you are unlucky to have one,That week if you cash in and take home after all deductions say normal pay £300 and shares £1700 50% of this will go to the attatchment of earnings leaving you with £1000 take home pay Just £700 from your shares.

Imagine expecting to take home £2000 and you take home £1000,Some may make plans and this hit could change everything.

Now dont get me wrong your attatchment will be reduced significantly,Maybe totally paid off?

Anyway,I thought best to post here as no doubt some on here will have attatchments so could they transfer there shares to someone else to avoid the hit?

Ofcourse that is if i am right,But if the money is sent to Royal Mail im certain they have to send to the Attatchment order.

[RobertT]

All dividend payments are paid out separately from our wages so I would assume the proceeds from selling the actual sahres will be too. Therefore your net payment will either go straight into your bank account or possibly you’ll get a cheque by post. I also assume Equiniti will deal with the tax and NI. Unless someone knows different?

Equiniti will take off their commission which is worked out as the higher of 0.5% or £20, tax and NI are based on the lower of the allocation price and the sale price. So based on the value of the 613 shares today, that’s £3,181 minus £960 tax and NI minus £20 commission leaving £2,201.

EDIT: Just found this on t'internet which suggests otherwise.

Your employer will normally deduct the income tax and NICs under PAYE. If you leave the company and you are a higher rate taxpayer, you may have further income tax to pay if your employer only deducted basic rate tax. You should give details of your shares and the tax you have paid in your Self Assessment tax return.

If the shares can be readily converted into cash (for example, if they are listed on the Stock Exchange) then your employer will deduct the income tax under PAYE and you will have NICs to pay.

[miko1967]

anyone thats going to sell their shares will have to wait until monday 17th of october from 8am
as themarkets are closed at the weekends.