Employee Shares

rbrtmcrthr

Hi there,

I'm a new user to this site and this is my first post. Took me ages to find out how to even start a new thread lol.

Anyway, At the weekend I was on the staff website for my work (Tesco) and noticed that after three months service I was able to start buying shares with my wages before tax and NI. So I signed up to it and have decided to put £30 away four-weekly. If I put this away for 5 years, I will be able to sell them tax free.

Is anyone able to tell me if this is worth it, or would I just be throwing my money away?

Thanks in advance
Robert

Hominu

Depends if the value of Tesco's shares increase, decrease or is the same between now and 5 years time.

So you could make a profit, make a loss, or break even.

You might want to check on them on a yearly basis or so.

I only have Tesco as part of a larger fund.

MoneySaverLog

Depends on whether you see the share price going up over the 5 years. You can cash in early but you'll have to pay tax and ni.

Sharesave is the safer option as you cannot lose with that, you either make a profit and exercise the option to buy the shares at a discount or you take the cash in the event the share price goes out the money.

I have both the SIP and Sharesave. Both are really good schemes. The SIP is a good way to give yourself a bonus every year after the initial 5 years of paying in. Also gives you that little bit of a edge if you're close to the 40% threshold for tax ;-)

rbrtmcrthr

Well I'm nowhere near the 40% threshold as I only work a mere 27 hours per week :-/ but as I am almost at a years service now (first week in July) I will also be joining SAYE scheme. I'm just thinking of spreading some money out to save up a deposit on a house. At the moment I have a Regular Savings account with HSBC @ 4% interest and just starting BAYE, then SAYE in the next month or so. will probably put £30-50 into the SAYE

rbrtmcrthr

MoneySaverLog wrote: »

I have both the SIP and Sharesave. Both are really good schemes. The SIP is a good way to give yourself a bonus every year after the initial 5 years of paying in. Also gives you that little bit of a edge if you're close to the 40% threshold for tax ;-)

So are Sharesave and SIP the same as BAYE and SAYE, just called different? I'm really new to this kinda stuff:embarasse