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Employee's Share Save Scheme
Stewboy1978
Posts: 192 Forumite
Looking for some advise on an Employees share Save Scheme please...
What happens is we pay x amount into this per month and the company match this - Every £10 payed in with £1.
If this money is withdrawn before 5 years then it becomes taxable. After 5 years it becomes tax free (Although - If you have been paying in for 5 years and 6 months only 6 months can be withdrawn tax free).
How we thought this would work is we would pay in and never touch this money as it is not only getting a 10% matching value it is getting 4% interest so the best thing to do would be leave for as long as possible - My case until retirement and have a nice nest-egg.
However we are now being told that it is against the law for this to be the case and once the money becomes "Non-Taxable" ie after 5 years then it will be any tax free amounts will be payed with our salary n a monthly basis so that you will only ever have 5 years worth in this account.
Not sure if this makes sense but I am wondering if the only keep 5 years is true? Everybody bought into this hoping to hold the money there - If you can't get to it you won't spent it type idea!
Thanks.
What happens is we pay x amount into this per month and the company match this - Every £10 payed in with £1.
If this money is withdrawn before 5 years then it becomes taxable. After 5 years it becomes tax free (Although - If you have been paying in for 5 years and 6 months only 6 months can be withdrawn tax free).
How we thought this would work is we would pay in and never touch this money as it is not only getting a 10% matching value it is getting 4% interest so the best thing to do would be leave for as long as possible - My case until retirement and have a nice nest-egg.
However we are now being told that it is against the law for this to be the case and once the money becomes "Non-Taxable" ie after 5 years then it will be any tax free amounts will be payed with our salary n a monthly basis so that you will only ever have 5 years worth in this account.
Not sure if this makes sense but I am wondering if the only keep 5 years is true? Everybody bought into this hoping to hold the money there - If you can't get to it you won't spent it type idea!
Thanks.
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