According to [broken link removed]:A PAYE employee who exercises a share option and pays Relevant Tax on a Share Option will be registered as a self
assessed person for the tax year in which the share option is exercised. A Return of Income will be forwarded after the end of
the tax year and the Return should be completed with details of all taxable income for the tax year, including the gain on the
share option.
The additional non PAYE income tax assessable gain arising from the ESPP discounted share options was less than €3,174. I filed and paid the income tax due within 30 days of each c. 6 monthly purchase period via an RTSO1 return/payment.Non-PAYE income less than €50,000 gross
An individual who is in receipt of income chargeable to tax under the PAYE system but who is also in receipt of income from other non-PAYE sources will not be regarded as a "chargeable person" if the total gross income from all non-PAYE sources is less than €50,000 and the net assessable income is less than €3,174 and the income is coded against PAYE tax credits.
There is no change to the current practice in relation to individuals who fall within this category, provided they have assessable non-PAYE income of less than €3,174. These individuals can continue to have the liability on such income effectively assessed within PAYE by means of coding in the income against their tax credits.
Assessable non-PAYE income of €3,174 or more
An individual with assessable non-PAYE income of €3,174 or more for any year is regarded as a "chargeable person" for Self-Assessment and must file a Form 11 for that year.
Does "coding the income against their tax credits" mean that the income must be declared (in advance) and tax credits adjusted appropriately to take account of this income? Since the income will not be known precisely in advance does one simply estimate the potential earnings and inform Revenue in order to obtain a revised statement of tax credits?These individuals can continue to have the liability on such income effectively assessed within PAYE by means of coding in the income against their tax credits.
ClubMan said:get an adjusted statement of tax credits and then declare the actual amount that arises at year end?
No - the opposite. Rather than having to go through the hassle of filing and paying the tax due via an RTSO1 I'd prefer if they just reduced my tax credits to account for the estimated the tax due and then I can balance it out at the end of the year.CharlieC said:Hi Clubman, do you believe you are entitled to any additional tax credits?.
That's what I did for last year for the two purchase periods of my ESPP. The first year that I have been involved with it.I am PAYE, and I have been exercising shares for the last 2 years. They were all options- I didn't pay for them.
I submitted the RTOS and 42% on any gain about 6 times with my PPS on the back of the cheque
I have never been requested to submit any year end return
I received receipts both times. The income doesn not appear on my P60 either and I would not expect it to since it is not actually direct income from the job.It is only recently Revenue have even issued me a receipt. It does not appear on my P60.
Yes - but the tax briefing above suggests that the requirement for RTSO1/self assessment can be dispensed with in favour of adjusted tax credits in certain circumstances. Anyway, I'm going to write to Revenue and ask them directly to see what they have to say about it.diroche said:The treatment of share options is different for two reasons:
1. you are required to pay the tax due in full within 30 days, while adjusting your credits would involve a gradual payment over the rest of the tax year.
2. exercising share options is one of the activities that triggers the rerquirement to complete a tax return for that year, similiar to transactions giving rise to a capital gains tax liability, for example.
ClubMan said:No - the opposite. Rather than having to go through the hassle of filing and paying the tax due via an RTSO1 I'd prefer if they just reduced my tax credits to account for the estimated the tax due and then I can balance it out at the end of the year.
.
I filed and paid the income tax due within 30 days of each c. 6 monthly purchase period via an RTSO1 return/payment.
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