restarting

[Maf. King]

On Wednesday 07 July 2010 07:35:37 Rob Cussons wrote:
> Hi Fred,
>
> thanks for that. It's actually a scheme where shares are bought on a
> monthly basis but the payment is taken from your gross income, so you
> aren't paying tax or national insurance. You also get two matching shares
> per share you buy (max. 6 per month) providing you keep the share you
> bought for three years. What type of account would this be best suited to?
>
> Thanks for your help,
> Rob.

Hi,

Sounds like an asset account to me, if I understand you correctly.

Say you get $100 salary, and are taxed at 10%,  I think the txn would look 
something like:

Income:Salary	                    100
Asset:sharesXYZ		10.00  (2 shares costing $5?)
Expenses:Tax               9.00
Bank:Checking             81.00

I'd suppose that the extra free shares might be a gift, but you would probably 
be best talking to a tax professional who knows about your local rules etc.

HTH
Maf,