Selling shares.. tax and national insurance...

[pants123]

On selling my shares.. this October. ..

Does tax and national insurance plus selling fee get deducted automatically by equiniti ??

On 613 shares total......

Many thanks..

[RobertT]

As the shares are in a SIP which is run by Equiniti and the rules of SIP’s state that tax and NI will be deducted if you sell between 3 & 5 years, I assume they will deduct the tax and NI automatically. Otherwise you’ll have to include it on your tax return(if you do one) or else HMRC will come looking for you.

Considering Equiniti are selling your shares for you, then they will obviously take their commission.

If the current share price was to remain similar to now, selling your 613 shares would mean tax & NI being based on the allocation price of £4.89 per share. That equates to £960 tax and NI plus £20 commission.

[pants123]

Ok thanks....

[borgpicard]

Getting mine and gone, our rep told the dim that the rumor was that there are a lot doing the same, hes reply was classic, " no one will do that ".

[k979aaa]

Getting mine and gone, our rep told the dim that the rumor was that there are a lot doing the same, hes reply was classic, " no one will do that ".

Well time will tell but I think your right and so is your rep but dickhead managers don't believe it well they have been told so if their is a staff crisis the top head's should roll down the hill of fate!

[postiept]

Would anyone know if part-timers selling their first allocation of shares(Oct 2013) would still pay tax this October if they don't earn the tax threshold around 11k. Thanks

[wandle]

Getting mine and gone, our rep told the dim that the rumor was that there are a lot doing the same, hes reply was classic, " no one will do that ".

He should have qualified his answer and said "no sensible person would throw away £960 tax, and miss out on £271 in dividends, for the sake of waiting 2 years. But we are talking about postmen here"

[Postie45]

whats the rules if you dont cash out the shares (after october) but leave RM can you still hold them and wait for the tax period to expire ?

[k979aaa]

whats the rules if you dont cash out the shares (after october) but leave RM can you still hold them and wait for the tax period to expire ?

Would have thought so but get some advice as to the date's of cashing them probably have to wait till April 2019.

[RobertT]

whats the rules if you dont cash out the shares (after october) but leave RM can you still hold them and wait for the tax period to expire ?

On page 23 of the guide we originally recieved which is available on the myroyalmail website, or page 9 of the guide about the latest batch, which i got today:

If you leave between three and five years after being given the Free Shares, the Trustee will take them out of the SIP and you can instruct the Employee Share ffers administrator, Equiniti, either to sell all your shares or sell enough of the shares to cover any income tax and National Insurance that are due and any costs (commission) relating to the sale of your shares, and transfer the rest of the shares to you for you to continue to hold outside the SIP.

It's not hard to find the info if you look!

[pants123]

Getting mine and gone, our rep told the dim that the rumor was that there are a lot doing the same, hes reply was classic, " no one will do that ".

He should have qualified his answer and said "no sensible person would throw away £960 tax, and miss out on £271 in dividends, for the sake of waiting 2 years. But we are talking about postmen here"

I disagree.... in 2 years time, the share price may drop by £1.50... thats over £900

So u say throwing away £960 is incorrect as a drop of £1.50 would equate to over £900 you think u would gain by not paying tax and insurance.... shares can go up as well as down.....

[RobertT]

Getting mine and gone, our rep told the dim that the rumor was that there are a lot doing the same, hes reply was classic, " no one will do that ".

He should have qualified his answer and said "no sensible person would throw away £960 tax, and miss out on £271 in dividends, for the sake of waiting 2 years. But we are talking about postmen here"

I disagree.... in 2 years time, the share price may drop by £1.50... thats over £900

So u say throwing away £960 is incorrect as a drop of £1.50 would equate to over £900 you think u would gain by not paying tax and insurance.... shares can go up as well as down.....

As you say, shares go down as well as up, so what happens if they go up?

In 2 years time they might have increased by £1.50 instead. The people that hold onto them will be better off by £920(share price on 613) + £960(tax & NI) and they’ll probably have got dividends worth roughly £270 along the way. So just under double what the ‘early sellers’ will get.

It’s a gamble either way.

[Tman]

Seems inevitable that many are going to flog them off at the first opportunity and that in itself will see the value drop.
Can't see how a (according to the market) over-manned and inefficient parcel and letters courier will ever see much of a share price increase unless RM start selling some of it's property portfolio.

[Andy_07]

My heads pickled with this selling malarky now .


Guy in my work told me i now have to register online with Equiniti in order to sell my shares in October this right ?..When the time arrives to sell my shares i have not got a clue where to start the procedure

[stephen hughes]

hi all,the issue price was £3.30 so you will be taxed 20 per cent plus 12 per cent national insurance,plus selling fee of around £20, total around £648 roughly on 613 shares.