IsleworthSpy: Partnership and Matching Shares. (Royal Mail Plan)14 Oct 2019 08:04
You can invest up to £100.00 a month or, if lower, 10% of your gross (pre-tax) pay in any tax year. If you are paid weekly, you can invest up to £23.07 a week.
Buying shares from your gross pay, before income tax and national insurance contributions (NICS) are deducted, is more tax efficient than buying them from your net pay (ie after income tax and NICs) provided you keep your shares for five years.
For every five shares you buy in Royal Mail plc (Partnership Shares) the company will give you one "Matching Share" ...up to a maximum of two "Matching Shares" per month.
You can stop, restart or change your investment at any time (one time per month).
You own the "Partnership shares" you buy from your gross pay. These shares, together with the "Matching Shares" we add, will qualify for any future Royal Mail dividend payments for as long as you own the shares.
If you keep the shares for five years, you will not have to pay income tax and NICs on their value when you come to sell them. If you sell your "Partnership Shares" within three years of purchase, all of the corresponding "Matching Shares" will be forfeited.
Like I said, Isleworth, taking into account no deductions from the £23.07 (more money for you!) the two free shares each month (120 free shares over 5 years) and no trading fees, it equates to a tidy little earner. Nice!!