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The decision of whether to select a tax equalised or a local package will be influenced by the impact of both packages on Sharon and on Memsie plc.

Sharon's perspective

From Sharon's perspective, she will receive a higher net income under tax equalisation (see illustrative calculations below). The £175,000 per annum received under tax equalisation (£250,000 less 30% tax and social security withholding) is significantly higher than the £143,661 received under the local package. (See illustrative calculations below.) When this higher amount received is taken together with the lack of uncertainty about the level of her income, it should provide her with more comfort regarding her financial position than a local contract.

Memsie plc's perspective

From the perspective of Memsie plc however, offering a tax equalised package would incur an additional tax cost of £32,556, the package costing