Shares and backdated pay if I leave

[RobertT]

Read the Prospectus for facts .If you resign for any reason no shares for 5 years ,retired or death you still get your shares.

Actually if you resign within 3 years you will lose the free shares, between 3 & 5 years they will be removed from the SIP and you will potentially have to pay tax & NI on them. If you leave after 5 years you keep them tax free.

[fishtank]

Actually if you resign within 3 years you will lose the free shares, between 3 & 5 years they will be removed from the SIP and you will potentially have to pay tax & NI on them. If you leave after 5 years you keep them tax free.

I would expect some exceptions to pop up.
I can't imagine someone who has to resign to look after their children because their partner has died being refused their shares,the publicity would be horrendous.
Also this rule may adversely affect women more than men or put added pressure on women to return to the workplace after having children which could open up a huge can of worms.

[Darren Bent]

how much tax and national insurance would be if it now at 4,000 (for debate stake)

[arnold cheshire]

how much tax and national insurance would be if it now at 4,000 (for debate stake)

£1320

[SP115]

When do we get this backdated payrise?

[arnold cheshire]

When do we get this backdated payrise?

theres been no deal .

[rhino49]

If you retire and are paid for your shares, will they be valued at the issue price or the share price at your retirement date ?

[RobertT]

how much tax and national insurance would be if it now at 4,000 (for debate stake)

£1320

According to pages 28/29 of the 'guide to RM shares' we would pay tax on the lower amount of what they were worth when we recieved them and what they're worth when we sell them. So for example, if the market value of our shares on 15th Oct 2013 was £3,000 and and their value on or after 15th Oct 2016 is £4,000 then we would pay tax on the £3,000. So a tax & NI bill of £960.

[RobertT]

If you retire and are paid for your shares, will they be valued at the issue price or the share price at your retirement date ?

You will get whatever their value is on the day you sell them.

[fishtank]

If you retire and are paid for your shares, will they be valued at the issue price or the share price at your retirement date ?

You will get whatever their value is on the day you sell them.

How does that work now that people don't actually have a "retirement" date?
Does it simply mean if you resign any time after your 65th birthday?
It might be in the prospectus somewhere I haven't really read it.

[TrueBlueTerrier]

When do we get this backdated payrise?

theres been no deal .

and is there any certainty it would be backdated.

[RobertT]

If you retire and are paid for your shares, will they be valued at the issue price or the share price at your retirement date ?

You will get whatever their value is on the day you sell them.

How does that work now that people don't actually have a "retirement" date?
Does it simply mean if you resign any time after your 65th birthday?
It might be in the prospectus somewhere I haven't really read it.

I've bought that up a couple of times on other threads and to be honest I don't know the answer, and as far as I know it hasn't actually been clarified by RM either.

[dvbuk55]

If you retire and are paid for your shares, will they be valued at the issue price or the share price at your retirement date ?

You will get whatever their value is on the day you sell them.

How does that work now that people don't actually have a "retirement" date?
Does it simply mean if you resign any time after your 65th birthday?
It might be in the prospectus somewhere I haven't really read it.

I've bought that up a couple of times on other threads and to be honest I don't know the answer, and as far as I know it hasn't actually been clarified by RM either.

Well they'll need to clarify it sooner rather than later because I'll be 67 before xmas and I don't want to have to die to keep my shares I'd much rather retire with dignity, if I have any left by then, and keep my shares..........or should I just look at it as a gamble that may or may not pay off............I'm not telling the wife about them, nor the insurance policies...........I don't want to get the dog to taste everything before I eat it .

[rhino49]

It is reasonable to assume that a retirement date is the date at which you become eligible for the state pension but as companies cannot now insist on a person leaving at that date, it seems you have to "resign" in order to retire officially. This would then be treated as a notice of retirement rather than a notice of resignation. A calculator to check your date of state pension eligibility and it's value is here ... https://www.gov.uk/calculate-state-pension" onclick="window.open(this.href);return false;

[Lincox]

Robert T
The £960 calculation is not exactly correct as you have based 12% NI on all of the £3000 whereas the weekly upper threshold I believe is somewhere around £750 for NI, so I would assume that the week in which you sell your shares you would exceed this limit so Ni would only be on £750 (approx) less your wages for that week.
There is however an NI Banding 1A which deals with employer benefits, which this could possibly come under and unfortunately the rate of NI for this is 13.8% so the bill may be higher than you have stated.
The other anomely is that any budgetary changes in tax and ni rates in the coming years may have an impact either negative or positive on the rates you have used.