Tax return for a PAYE worker exercising share options

B

Billy Elliot

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I've recently exercised some share options that my employer gave me. I paid the tax owed and completed the RTSO1 form. I have not had much guidance from my employer but in the briefing notes I received they said I had to file a tax return at year end.

I haven't understood the wording very well. If I exercised the shares in 2013 does the tax return have to be filed in October 2013 or October 2014?


I can only find "Form 11 2012"on the revenue website, is this the one I should file?
 
If you sold the shares in 2013, the return has to be in by October 2014 or mid November if online. It is important that you paid the tax as that has to be done much sooner (I forget the dates). But you do need to follow it up with a tax return. They are simple enough to fill out, especially if your only income is PAYE.

Be warned though, once you submit a tax return to the Revenue, they will look for one every year, even if you have nothing more than your PAYE income to declare. If you ignore them and need to claim something back in subsequent years, they will ask you to get your returns up to date before giving you the refund. I am speaking from experience!


Steven
steven@bluewaterfp.ie
 
Thank you Sbarrett, I appreciate you taking the time to respond.

I paid the tax due within the 30 days but interestingly enough I spoke with the revenue today and the person who dealt with me previously told me there was no further action required, no end of year return required.


Are they wrong or does it not apply to persons such as myself who paid income tax, PRSI and USC on the shares as the revenue considers them to be income?
 
Did you get it in writing? If not, I'd be careful. Too often, asking someone in person or on the phone will get you different answers depending on who you're talking to on what day. Sorry, got burned by a share exercise issue years ago when after going into Revenue specifically to ask if I had to pay tax and being told (and, as an innocent young thing believing) that the company would send the details to Revenue and I didn't need to do anything, I ended up SIX years later getting a very large bill from Revenue. Entirely my own fault for not having a clue but have never forgotten it.

Re the requirement to file tax returns every year once you've done it once, if you revert to having only your PAYE income and nothing else you can let Revenue know and they'll stop asking.
 
If you sold them in 2013 and there is a CGT liability, you have to pay it by 15 December of this year and submit a tax return by 31 October 2014.

If you paid income tax on it, it should be included in your P60, so I would imagine they are correct.

I am not a tax adviser, so I don't know 100%. If the Revenue told you that everything is alright, then take their word for it. No harm dropping them an email about it just to get something back in writing...


Steven
steven@bluewaterfp.ie
 
Thanks for the replies.

Yes, I do have it in writing, I emailed the revenue.


The money has to be paid within 30 days of the transaction Sbarrett, not the end of the year. I think because it is taxed as salary it's slightly different treatment.
 
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