Espp, rsu, so

LukeSkywalker007

I was granted RSUs this year. 25% was vested immediately. As I understand, I would be liable for income tax for share that I haven't even sold. Now what I am trying to understand is when I fill in on tax return the amount goes up to 5k GBP. That is too much. Plus I have already paid the tax via my payroll. Do I really need to pay it on tax return. How can I show that it is already on the payslip.

Dead_keen

Yes, income tax is normally due when RSUs vest, regardless of whether the shares are sold.

Have a look on your payslip in the month they vested (or the next month or two). You should see extra income and extra PAYE/NIC if it was deducted.

If it wasn't, you have to pay the extra tax on self-assessment. Similarly, if it was deducted at the wrong rate for some strange reason you'd have to pay the extra.

Another way of telling is that your take home pay would have fallen a lot that month because of the extra PAYE/NIC deducted.

If the shares are listed, your employer should have withheld PAYE. If they are not it is a bit trickier and it will probably be all self-assessment.

If they did and you think the value they operated PAYE on is right, the value of the shares you acquired will be included on your P60 and you don't need to include the vesting on your return again. You may have to include the sale if you sell them later though.

There are special rules though if the "vest" but they could still be forfeited - although that would be unusual.

LukeSkywalker007

Thanks for the explanation.

It was deducted on my payslip but when I put the P60 details on tax return, it calculates that I have more to pay. 6.5k ok I know 1.5 k is for child benefit but where did the 5k come from. I can only think the shares. Or the tax code needs to change ie the company has been deducted insufficient tax. Could that be the case?