Share saye plan

23
Posted 23rd Nov
im trying to get some advice about some shares I have been awarded from my employer

hopefully someone more knowledgeable than me can advise what's best to do

I was awarded 2284 shares and I paid £50 month into this share plan for 3 years. the maturity date is next month and I have the option to buy the shares at 0.79p each with the share price currently at £2.96 each

now I think that means i can purchase the shares at the 0.79p or I can take the cash and interest earned which is currently £5000 potential gain so along with what I've paid in I'm looking at about £6800

do I take the £6800 or do I buy them at 0.79p?

I'm totally clueless about shares so if anyone has any helpful guidance for me I'd appreciate it
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You buy the shares and treble your money. Yes you have the option to buy them at 79p
you will receive a form soon with the different choices, you tick buy the shares then they will send you a certificate to say you own them within a couple of days.
If you decide to take cash it will be the Amoy you paid in plus some interest but nowhere near the amount of the shares.
In the meantime set an online aharedealing account up with someone like the halifax so that you are in a post to sel them as soon as your certificate comes.
I had 3 sharesaves with British steel and made a fair bit on them each time .
Edited by: "snoopy18" 23rd Nov
snoopy1823/11/2019 08:15

You buy the shares and treble your money. Yes you have the option to buy …You buy the shares and treble your money. Yes you have the option to buy them at 79p you will receive a form soon with the different choices, you tick buy the shares then they will send you a certificate to say you own them within a couple of days.If you decide to take cash it will be the Amoy you paid in plus some interest but nowhere near the amount of the shares.In the meantime set an online aharedealing account up with someone like the halifax so that you are in a post to sel them as soon as your certificate comes. I had 3 sharesaves with British steel and made a fair bit on them each time .


What happens if you lose your job though? I was told by a friend who used to work at same place as me that he lost all of his shares when he was sacked

What's the online share dealing account? Am I investing all the shares I purchased into this Halifax account?
Edited by: "efc_4ever" 23rd Nov
efc_4ever23/11/2019 08:18

What happens if you lose your job though? I was told by a friend who used …What happens if you lose your job though? I was told by a friend who used to work at same place as me that he lost all of his shares when he was sackedWhat's the online share dealing account? Am I investing all the shares I purchased into this Halifax account?


You won’t lose your job between now and next month and no the online selling account is just a way to sell the shares immediately
Your friend didn’t lose any shares, he lost the option to buy the shares
You don’t want to be investing them I guess you just want the profit
You could possibly get your bank to sell them for you when you have a certificate or there might even be an option on the form to let them sell them but make sure you tick the right box as no going back once you’ve sent it in
snoopy1823/11/2019 08:32

You won’t lose your job between now and next month and no the online s …You won’t lose your job between now and next month and no the online selling account is just a way to sell the shares immediatelyYour friend didn’t lose any shares, he lost the option to buy the shares You don’t want to be investing them I guess you just want the profit You could possibly get your bank to sell them for you when you have a certificate or there might even be an option on the form to let them sell them but make sure you tick the right box as no going back once you’ve sent it in


Thanks. The maturity date is 1st December and I selected to not buy the shares at 0.79p last week but I think I made a mistake and should have purchased the shares now. Is there no way of me changing that now?
efc_4ever23/11/2019 08:44

Thanks. The maturity date is 1st December and I selected to not buy the …Thanks. The maturity date is 1st December and I selected to not buy the shares at 0.79p last week but I think I made a mistake and should have purchased the shares now. Is there no way of me changing that now?


Oh dear
you’d best ring the scheme helpline first thing Monday morning and hope they haven’t started processing the forms but I fear the worst
I hope they can help you, it’s confusing when you’re doing things you’re not familiar with
Edited by: "snoopy18" 23rd Nov
snoopy1823/11/2019 08:48

Oh dear you’d best ring the scheme helpline first thing Monday morning and …Oh dear you’d best ring the scheme helpline first thing Monday morning and hope they haven’t started processing the forms but I fear the worstI hope they can help you, it’s confusing when you’re doing things you’re not familiar with


Bloody hell
Ok thanks anyway
snoopy1823/11/2019 08:48

Oh dear you’d best ring the scheme helpline first thing Monday morning and …Oh dear you’d best ring the scheme helpline first thing Monday morning and hope they haven’t started processing the forms but I fear the worstI hope they can help you, it’s confusing when you’re doing things you’re not familiar with


I mean what figure would I be looking at if I was able to get the shares at 0.79p and then sell them? Compared to the £6800 that I could get just from not buying them
efc_4ever23/11/2019 09:41

I mean what figure would I be looking at if I was able to get the shares …I mean what figure would I be looking at if I was able to get the shares at 0.79p and then sell them? Compared to the £6800 that I could get just from not buying them


Number of shares you could buy (2284) x current share price (£2.96) = £6,760


Your numbers are out.

If you saved £50 for 36 months you'd have £1800 saved.

If the option price is £0.79, you can buy 2278 shares.

At the current price of £2.96, this 2278 shares (that only cost you £1800) will be worth £6744.


.. you're set to lose £4,944 by making this mistake.

You will get back what you paid in (usually without interest).
Edited by: "adam_holcombe" 23rd Nov
You’ve not understood it right
you will only get what you paid in not plus a small amount of interest
Nothing like £6800
Who put that figure in your head
The sharesaves I have been in did pay interest, but it will be minimal compared to buying the shares and trebling your money
efc_4ever23/11/2019 09:41

I mean what figure would I be looking at if I was able to get the shares …I mean what figure would I be looking at if I was able to get the shares at 0.79p and then sell them? Compared to the £6800 that I could get just from not buying them

snoopy1823/11/2019 10:03

You’ve not understood it right you will only get what you paid in not plus …You’ve not understood it right you will only get what you paid in not plus a small amount of interestNothing like £6800Who put that figure in your head The sharesaves I have been in did pay interest, but it will be minimal compared to buying the shares and trebling your money


I did the same 3 years ago with another share plan

Paid in 50 a month and at the end of the 3 yrs got about 9k. You either opt to buy the shares at the discounted price or if you don't buy the shares at the discounted price you get your money back plus interest earned which at the time was 9k and at the time of this 3yr plan is close to £6800
Edited by: "efc_4ever" 23rd Nov
snoopy1823/11/2019 10:13

Comment deleted


I've paid £50 a month for 36 months and my savings balance in the share plan is £1800

Over the 3 years my potential gain is £4960.85

So I can go onto purchase the shares at 0.79p each or if I don't choose that option I can just end the plan and take a total of £6760.64

I did the same 3 years ago with another share plan
efc_4ever23/11/2019 10:21

I've paid £50 a month for 36 months and my savings balance in the share …I've paid £50 a month for 36 months and my savings balance in the share plan is £1800Over the 3 years my potential gain is £4960.85So I can go onto purchase the shares at 0.79p each or if I don't choose that option I can just end the plan and take a total of £6760.64 I did the same 3 years ago with another share plan


You're mistaking buying the shares and instantly disposing (selling) them, which would give you almost £6800.

Vs cancelling the SAYE scheme and getting back your £1800.

This is not a difficult thing to understand.

These schemes are heavily regulated and the documentation will be easy to understand.

I suggest you read it again.
efc_4ever23/11/2019 10:21

I've paid £50 a month for 36 months and my savings balance in the share …I've paid £50 a month for 36 months and my savings balance in the share plan is £1800Over the 3 years my potential gain is £4960.85So I can go onto purchase the shares at 0.79p each or if I don't choose that option I can just end the plan and take a total of £6760.64 I did the same 3 years ago with another share plan


And you think you've earned 270% interest on your initial £1800?

LOL.
buy the shares then sell them and keep the profit.

tax implications here on selling the shares and pocketing the profit

gov.uk/tax…aye
That's why I asked for advice on here just to see if anybody has any experience with dealing with shares because I ain't got a F in clue what I'm doing

I think I've bought the shares and instantly sold them
Edited by: "efc_4ever" 23rd Nov
efc_4ever23/11/2019 12:00

That's why I asked for advice on here just to see if anybody has any …That's why I asked for advice on here just to see if anybody has any experience with dealing with shares because I ain't got a F in clue what I'm doingI think I've bought the shares and instantly sold them


it would have been better to have asked for advice before you contributed into the SAYE plan as paying money into a plan you have no understanding of is never a great idea.
mutley123/11/2019 12:08

it would have been better to have asked for advice before you contributed …it would have been better to have asked for advice before you contributed into the SAYE plan as paying money into a plan you have no understanding of is never a great idea.


Disagree. They're risk free.

You can get your contribution back at any point.
snoopy1823/11/2019 10:03

You’ve not understood it right you will only get what you paid in not plus …You’ve not understood it right you will only get what you paid in not plus a small amount of interestNothing like £6800Who put that figure in your head The sharesaves I have been in did pay interest, but it will be minimal compared to buying the shares and trebling your money



I think what OP has done is taken the amount of profit from selling the shares £2.17 per share and multiplied it by the amount of shares granted, giving a total profit of £4,956. They have then added the amount they have saved over the period £50 x 36 months = £1,600. OP you have the option of one of these, either

a) take the £1,600 cash you have saved over 3 years; or
b) buy 2284 shares at 0.79 using your £1,600 plus bonus (I think)

You can't do both unfortunately

Out of interest what was the last date for submitting your election form - that's really key? If the deadline hasn't passed you should be good to change. If it has passed then you need to contact your administrators or HR dept asap as noted by another poster. If it is run by say the Registrars or another external provider put this in writing and contact your internal Rewards team/Co Sec also. This is important - they will secretly be horrified that you are taking cash and will act swiftly to try if possible to remediate.

Also if the deadline has passed, if you have the scheme rules, read through the section on 'exercise' and see if that has anything that may help you.

Assuming you are allowed to update, if it were me I would NOT TAKE THE CASH, obviously you can do what you want. I would either

1. Exercise the shares and sell straight away, being mindful of the capital gains tax implications - I think the allowance is £12k this year so assuming a profit of c.£5k on the sale ensure you haven't made/won't make a relevant profit elsewhere during this tax year of +£7k (there's a link above); or

2. hold the shares and consider transferring straight into an ISA. This will shield you from any tax should the shares go stratospheric in say 10 years and you are still holding them.

My decision would be based on the Company, how they are doing etc. You are best placed to know this.

Long, I know but read through all the helpful posts 10x and you'll get it. It's a minefield because essentially you get sold it, it sounds fabulous and then 3-5 years later you might not understand it. i'm like that with Net Present Value, I relearn it from scratch annually

Do feed back on how you get on - I'm more interested to know if you can change your choice and if not why not.
Monaco.Blue23/11/2019 19:29

I think what OP has done is taken the amount of profit from selling the …I think what OP has done is taken the amount of profit from selling the shares £2.17 per share and multiplied it by the amount of shares granted, giving a total profit of £4,956. They have then added the amount they have saved over the period £50 x 36 months = £1,600. OP you have the option of one of these, eithera) take the £1,600 cash you have saved over 3 years; or b) buy 2284 shares at 0.79 using your £1,600 plus bonus (I think) You can't do both unfortunately Out of interest what was the last date for submitting your election form - that's really key? If the deadline hasn't passed you should be good to change. If it has passed then you need to contact your administrators or HR dept asap as noted by another poster. If it is run by say the Registrars or another external provider put this in writing and contact your internal Rewards team/Co Sec also. This is important - they will secretly be horrified that you are taking cash and will act swiftly to try if possible to remediate. Also if the deadline has passed, if you have the scheme rules, read through the section on 'exercise' and see if that has anything that may help you. Assuming you are allowed to update, if it were me I would NOT TAKE THE CASH, obviously you can do what you want. I would either1. Exercise the shares and sell straight away, being mindful of the capital gains tax implications - I think the allowance is £12k this year so assuming a profit of c.£5k on the sale ensure you haven't made/won't make a relevant profit elsewhere during this tax year of +£7k (there's a link above); or 2. hold the shares and consider transferring straight into an ISA. This will shield you from any tax should the shares go stratospheric in say 10 years and you are still holding them. My decision would be based on the Company, how they are doing etc. You are best placed to know this. Long, I know but read through all the helpful posts 10x and you'll get it. It's a minefield because essentially you get sold it, it sounds fabulous and then 3-5 years later you might not understand it. i'm like that with Net Present Value, I relearn it from scratch annually Do feed back on how you get on - I'm more interested to know if you can change your choice and if not why not.


This is all correct and yes your right I opted to take the shares and did option B and the maturity date is 1st December 2019 so assuming I should now get around about £6800

The ISA is a good idea actually
We had a share scheme at work. Bought at 31.5p and matured at 115p.
Now have a solar panel array in the house
Monaco.Blue23/11/2019 19:29

I think what OP has done is taken the amount of profit from selling the …I think what OP has done is taken the amount of profit from selling the shares £2.17 per share and multiplied it by the amount of shares granted, giving a total profit of £4,956. They have then added the amount they have saved over the period £50 x 36 months = £1,600. OP you have the option of one of these, eithera) take the £1,600 cash you have saved over 3 years; or b) buy 2284 shares at 0.79 using your £1,600 plus bonus (I think) You can't do both unfortunately Out of interest what was the last date for submitting your election form - that's really key? If the deadline hasn't passed you should be good to change. If it has passed then you need to contact your administrators or HR dept asap as noted by another poster. If it is run by say the Registrars or another external provider put this in writing and contact your internal Rewards team/Co Sec also. This is important - they will secretly be horrified that you are taking cash and will act swiftly to try if possible to remediate. Also if the deadline has passed, if you have the scheme rules, read through the section on 'exercise' and see if that has anything that may help you. Assuming you are allowed to update, if it were me I would NOT TAKE THE CASH, obviously you can do what you want. I would either1. Exercise the shares and sell straight away, being mindful of the capital gains tax implications - I think the allowance is £12k this year so assuming a profit of c.£5k on the sale ensure you haven't made/won't make a relevant profit elsewhere during this tax year of +£7k (there's a link above); or 2. hold the shares and consider transferring straight into an ISA. This will shield you from any tax should the shares go stratospheric in say 10 years and you are still holding them. My decision would be based on the Company, how they are doing etc. You are best placed to know this. Long, I know but read through all the helpful posts 10x and you'll get it. It's a minefield because essentially you get sold it, it sounds fabulous and then 3-5 years later you might not understand it. i'm like that with Net Present Value, I relearn it from scratch annually Do feed back on how you get on - I'm more interested to know if you can change your choice and if not why not.


Hi Monaco
Just to update . I received a call today and was informed that I had actually selected to just take my savings back that I had paid in over the 3 years

I said to the person on the phone I'd made a mistake and actually wanted to buy the shares to sell immediately

Luckily the cut off point was today apparently for me to change my instruction. I have now changed my instruction to buy to sell
I always get confused when they ask do you want to keep or sell keep means you want to keep on the market and sell means you want the potential gain. my first time i selected sell for potential gain and i looked at the share price which was high which i was keeping track of because i wanted a good return, so made my decision for potential gain then, turns out thats not the price it gets sold at. They collectively sell it because theres many people and after a certain date which the share price can go up or down so its not in your control, but i saw it declining and i know it wont be as high as i saw it. i lost out a lot, now i keep it on the market and will sell it myself as like it to be sold at the price i see (not sure if that will be the case as i havent sold any yet) but hoping it is, the money will be more than potential gain.
Edited by: "MR1123" 27th Nov
efc_4ever27/11/2019 11:12

Hi MonacoJust to update . I received a call today and was informed that I …Hi MonacoJust to update . I received a call today and was informed that I had actually selected to just take my savings back that I had paid in over the 3 years I said to the person on the phone I'd made a mistake and actually wanted to buy the shares to sell immediatelyLuckily the cut off point was today apparently for me to change my instruction. I have now changed my instruction to buy to sell


Aw, really pleased for you. Glad they phoned and tbh I would expect nothing more. Enjoy the profits, well deserved.
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