Joining a established Ltd, questions

[b0redom]

Pre IPOs are a slightly better bet (sometimes). I worked for one of those too, but in order for the stock to be worth anything at all, the company needs to have been profitable for a good couple of years prior to launch. Even then it's a gamble.

I'd go back to a preIPO, but only if the salary was good, and the job was fantastic. I've been burned far too many times to risk it just for the options again.

[b0redom]

Do you mean you're taxed on the value of the options even if you don't take them, or you're taxed when you take them and make some money?

You're taxed when you exercise them - ie when you make money from them.

[ft101]

ft101, it is likely that the best way to achieve this would be via an EMI scheme. If you want to PM me your phone number I can call you and explain the tax implications as it would be quite time-consuming to type it all out on here.

Thanks for the offer, much appreciated. Check out the EMI scheme online, is only for options up to 120k, but apparently these should be 'worth' 1.3m in 4-5 years.

Tbh my 'sceptical bone' is in the red zone on this one

[THEPUMA]

Thanks for the offer, much appreciated. Check out the EMI scheme online, is only for options up to 120k, but apparently these should be 'worth' 1.3m in 4-5 years.

Tbh my 'sceptical bone' is in the red zone on this one

The £120K threshold relates to the value at the date of the grant of the option ie today's value, which may well be below £120K, particularly when you allow a substantial discount (typically 75-80%) for the fact that the options will only (presumably) be over a minority interest.

[ft101]

An EMI approach is out of the question due to costs (they wont consider it), which brings this back to a ordinary share purchase/option offer.

I'm getting a discount, and the shares are full voting rigths and over a minority interest as you say.

I will eventually be a director.

Still not sure on this one.. on paper looks like a good offer but i'll be tied to the company for a long time (4-5 yrs).

[ratewhore]

Still not sure on this one.. on paper looks like a good offer but i'll be tied to the company for a long time (4-5 yrs).

Well you have to weigh up the risk of them not being worth that in 4-5 years time against the extra income you would gain from contracting over that period.

Difficult one...

[ft101]

Well you have to weigh up the risk of them not being worth that in 4-5 years time against the extra income you would gain from contracting over that period.

Difficult one...

Yep, thats my delima. Also its difficult to put a price on the bench time - my favourity times of contracting.

Plus, I couldn't legitimately hang out on contractoruk forums anymore