Company Share Buy Scheme

Newbie2saving

That is great advice thank you. I am sure I will be back to discuss the options then! Let's just hope the company continues to profit!

jojo1964

opinions4u wrote: »

The main benefits:

Tax relief and national insurance relief.
20% of additional shares.


The main disadvantages:

Loss of tax benefits if you sell within 5 years.
Inflexibility within the first 3 years.
Risk of having all your shares exposure in one company - financial difficulties could cost you your job and this chunk of your savings.
Inflexibility with the disposal of shares - it's not a 5 year plan it's a 5 year rolling plan (so a new 5 year term starts each month).


I'd say do it, but understand all the downsides.

Another advantage of SIPPs over sharesave is the Dividend paid, as the shares in a sipp are yours each month.

MoneySaverLog

Both Sharesave and SIP have their advantages and disadvantages.

SIP
You have to hold them for a rolling 5 years or pay tax and NI.
It comes out before tax and NI.
You get dividends
No discount on share price

Sharesave
Discounted option to buy shares at 80% of value, the option price. If shares go up you win, if shares go down you draw your cash out in full. No Brainer!
You pay tax and NI on your monthly contributions
There are no dividends until you exercise your option to buy the shares, so if Share Price goes Ex-Dividend and share price drops you have to hope the share price goes back up to cover what the dividend payment was.


I have both :-)