Thanks for that explanation. Royal mail stand to gain a fair bit then if 130,000 staff are enrolled in the scheme. Doesn't surprise me in the slightest that they stand to save more than the workers! For information, my gross pay last yr was £22,300 and my pension contributions are just under £100 a month.
16 Apr '15
steady as she goes.............
SP seems to be hovering around the 4.50 mark now. I think it will stay doing this until after the election and then onto full year results when hopefully we will have news on property sale and improved margins from lower diesel cost. We shall see - I was intending to add more at 4.30 but not sure it will go there( maybe if Red " I will renationalise everything" Ed gets in !)
16 Apr '15
Steady as she goes.................
Doffer here, Well this share has been really steady for a few weeks now, in fact, this share is trading UP, just over 4% on 6 months ago. Seems strong enough at around 448 - 449 and hitting 450 every now and then. It may have its knockers and YES, maybe sentiment drove this share to those heady heights too quickly and in hindsight, were unrealistic, ie £6.00 + Feel for the Guys and Gals who are stuck with this share that were bought @ £5.50 - £6.00 but hopefully they can see a tad of light, although £5.50 - £6.00 is a long way off. Maybe next year.................. As I said a few days ago, lets get a "bottom out figure" of £4.50 and then edge to the 475 mark...... PS - Love the single figure trades over the last few days ( cryptic messages afoot ), must have been a dozen or so @ 1 single share trade yesterday and that's without the 2s and 3s trades and similar is going today. STEADY AS SHE GOES........
16 Apr '15
It's not a tax fiddle! There are however several down points to salary sacrifice that need to be considered : If your employer is providing you with life cover, this is usually worked out as a multiple of your salary. Your employer may provide less life cover if you sacrifice some of your salary. You won't be able to receive a refund of your contributions if you leave your employment within two years of being in the scheme (a benefit many workplace schemes offer). This is because you are not directly paying contributions, so there are no contributions to be refunded. Your lower salary may affect the amount of money you are able to borrow for a mortgage. Mortgage lenders usually calculate how much you can borrow as a multiple of your salary, although your employer may agree to state your original salary when they supply a mortgage reference. How do the figures really pan out? Lets say you are on £24,000 a year. This means that your gross monthly income is £2,000 from which tax of £223.33 and NIC of £159.40 is deducted leaving you with a net pay of £1617.27. If you wanted to make a gross contribution of £1,000 to a pension scheme then your net payment after tax relief would be £800, making a net monthly deduction of £66.67. This would be taken from your net income so you would have £1,550.60 in your hand. If you went the salary sacrifice route, contributing £1,000 to your pension rather than receiving this as salary, then from your monthly gross income of £2,000 you would pay tax of £206.67 and NIC of £149.40 and the salary sacrifice deduction of £83.33. Your net monthly income is therefore £1,560.60 so you have saved a grand total of £10 per month or £120 per year. From the employers point of view they have the same payroll costs of £24,000 for the employee but they are able to save on National Insurance on the £1,000 salary sacrifice and this is at a rate of 13.8% so the employer is better off by £138.80! Surprisingly enough your employer is better off than you are!!!! Multiply this saving for the employer by say 70,000 employees, and you are looking at savings of close to £10 million and basically all the employer has done is sold you a salary sacrifice scheme to save you a few £'s.
15 Apr '15
Sometimes known as salary sacrifice scheme. Google it. Basically a tax fiddle to save employers and workers a bit of money. They pay you less gross basic pay so you pay less tax and Nic. They then pay your pension contributions for you so you in effect have slightly higher take home pay. The company gets tax breaks for doing this. Please somebody correct me if I'm not getting it right.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.