Should i buy shares in DHL
Discussion
I am a truck driver with DHL and need some advice on shares.
I have just recieved a letter from DHL telling me all members of staff can buy shares tax exempt from £5 to £125 a month but not exceeding 10% of my earning.
The parent company is Deutsche Post AG so thats what the shares will be.
Any advice please.
I have just recieved a letter from DHL telling me all members of staff can buy shares tax exempt from £5 to £125 a month but not exceeding 10% of my earning.
The parent company is Deutsche Post AG so thats what the shares will be.
Any advice please.
I'm in a sharesave scheme with my company. I can pay into a plan for 3 or 5 years after which I can have the option to buy shares at the price they were when I started (plus a discount) I can pull out at any time and get my money back. Even if the shares become worthless when the plan matures I still get all my money back plus a bonus so can't really loose everything (its tied in with the Halifax bank).
I am liable for tax and NI on the gain and if I keep hold of the shares possibly liably for a capital gain. The example that I was given by the company was this
Example 1
Low rate Taxpayer with no other capital Gain
• 500 Unapproved Options at £1.50
• Exercised at £1.80
• Sold at £2.30
• Profit before tax is £400
(500 × 80p)
• Income Tax is due on £130.80
500 × 30p less £19.20 Employers NI)
• NI is due on benefit of £150
(500 × 30p), so
• Income tax is £28.78
• Employee NI is £16.50
• Employers NI is £19.20
• Capital Gain is £250
(500 × 50p and ignoring any taper relief)
which is less than £8,200 so
there is no Capital Gains tax.
• Total tax is £64.48
So you would actually receive £335.52
I only pay in £50/month but the shares have almost doubled since. Not going to make a pile but enough for a nice little holiday or car fund.
I am liable for tax and NI on the gain and if I keep hold of the shares possibly liably for a capital gain. The example that I was given by the company was this
Example 1
Low rate Taxpayer with no other capital Gain
• 500 Unapproved Options at £1.50
• Exercised at £1.80
• Sold at £2.30
• Profit before tax is £400
(500 × 80p)
• Income Tax is due on £130.80
500 × 30p less £19.20 Employers NI)
• NI is due on benefit of £150
(500 × 30p), so
• Income tax is £28.78
• Employee NI is £16.50
• Employers NI is £19.20
• Capital Gain is £250
(500 × 50p and ignoring any taper relief)
which is less than £8,200 so
there is no Capital Gains tax.
• Total tax is £64.48
So you would actually receive £335.52
I only pay in £50/month but the shares have almost doubled since. Not going to make a pile but enough for a nice little holiday or car fund.
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