SAYE application dates:1 September 2014 - 1 December 2017

[ratchet]

SAYE schemes such as this are a no brainer.You cannot lose. At the end of the period you can purchase shares at the price three years ago, or simply receive the cash you have saved in the unlikely event the SP is lower than three years ago.

You cannot lose..... How would getting the money you paid in back be better than having put it in a cash ISA and getting 3 years interest Tax free?

A base share price of £3.30 (launch price) might be a good deal but at the current price I'm not so sure.

Cash ISA's are paying around 1.5% at the moment.

Say you put a grand a year into the RM scheme - and a grand a year into your cash ISA.

At the end of the 3 year period the RM shares may not have made any gains, so you simply ask for your 3K back...... on the other hand they may have made significant gains and you get a tidy little sum

In the meantime, the 3K you invested in your cash ISA will have earned you about £100 in interest for the whole of that 3 year period.

Given the ridiculously low interest rates on offer at the moment, I will probably be having a punt on the scheme.

[Wornoutdriving]

I notice that there is one catch that may make you think twice about share buying. Did you notice at the bottom of page 9 of the SAYE leaflet, in small print, about 'deduction of sales commission or dealing fees which you will have to pay Equiniti'.
If you buy a small amount could the charges make it worthwhile when you sell?

[Deadly]

It shouldn't be much, most share dealing companies normally charge around £15 per deal. The charges may be slightly different for SAYE but it certainly won't be a large amount.

[Darren Bent]

went for it at 12 quids a week. Let see what happens.

[Darren Bent]

is this come out before tax or after tax as I am not sure what Gross mean.

[RobertT]

is this come out before tax or after tax as I am not sure what Gross mean.

The SAYE savings will be taken off your earnings after income tax, etc have been deducted.
Gross is what you’re paid before any deductions are taken off, net is what you actually take home.

[DGUEST13]

When do we stop contributing to SAYE scheme?

[TrueBlueTerrier]

When do we stop contributing to SAYE scheme?

Its a fixed 3 year scheme. So Nov this year

[Duran]

Quick one . Come november,if we take up option to buy shares. Sell them straight away will monies be subject to income tax, or just the profit. As we have already paid tax on the money being used to buy shares.

[RobertT]

Taken form the SAYE booklet we all received which is also available here: https://www.myroyalmail.com/saye" onclick="window.open(this.href);return false;

SAYE Timeline:

Monday 1 September 2014 - Application period opens. Option price announced.
Thursday 18 September 2014 (5pm) - Application period closes.
Thursday 25 September 2014 - Options likely to be granted (grant date).
End October 2014 - Option certificates and welcome letters sent to those taking part in SAYE.
Week beginning 3 November 2014 - Saving deductions from your net pay start if you are paid weekly.
28 November 2014 - Saving deductions from your net pay start if you are paid monthly.
1 December 2014 - Savings contract starts.
Week beginning 31 July 2017 - Saving deductions from your net pay stop if you are paid weekly (unless you take a payment holiday).
31 October 2017 - Saving deductions from your net pay stop if you are paid monthly (unless you take a payment holiday).
1 December 2017 - Savings term ends (unless you take a payment holiday). You will then have six months to use your savings to buy shares at the option price, if you choose to.

What happens about tax?

In most circumstances you won’t have to pay income tax or National Insurance on your shares when you buy them, even though you will have been able to buy the shares for 20% less than the share price on the stock market when the scheme launched. However, you may have to pay capital gains tax (CGT) on any gain made between the option price and the market price when you sell the shares. Every person has a yearly CGT allowance. You will not have to pay CGT on any gains you make below your yearly allowance. For 2014-2015, the CGT allowance is £11,000.

[Duran]

Thankyou Robert. Just noticed we cease saving end of july. Making only 40 weeks saving in year 3. Why are we not saving till end October,3 full years?

[RobertT]

Again, taken from the booklet:

If you are paid weekly, you will usually finish your saving deductions before those paid monthly in terms of payments made into the scheme.
This is because you will pay an extra four weeks’ worth of payments every calendar year (because of five-week months).

[Duran]

Robert. I need you on speed dial . hahahaha. Still only 52+52+40= 144 weeks. Not 156 weeks. Less money in pot.

[RobertT]

Robert. I need you on speed dial . hahahaha. Still only 52+52+40= 144 weeks. Not 156 weeks. Less money in pot.

144 is the correct number of weeks!
There will not be any less money in the pot because in 2014 you signed up to buy an x amount of shares. Try this bit of maths:

A x B ÷ C = D

A - the amount you're paying per week
B - the savings period(144 weeks)
C - the option price(£3.60)
D - the number of shares you've signed up to buy

[rambo1]

Buy from dec1st this yr then. Gotta be quick to get for the ex div date, usually first week of Dec. If that's what you want.