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Tax for this year, confused about RSU tax declaration
sho_me_da_money
Posts: 1,679 Forumite
Deleting my original comment as the content was irrelevant.
Can someone be kind enough to verify this please.
Gross Pay for the month - This is the amount I am paid and DOES NOT subtract private medical cover and my pension salary sacrifice
Taxable pay for the month - This is the amount I am paid and DOES subtract private medical cover and my pension salary sacrifice
Total bonus, commission, or overtime between 6 April 2022 and 5 April 2023 - This is the one I am confused on. I have inserted £41,000, which is basically the value of the RSUs I will be awarded in gross in total before 5 April 2023 based on the share price today. I work for a US company who sell my stock to cover taxes at the time of vesting. The tax I typically pay for these RSUs based on historic vests is around 52%. Example, I get 10 stock units awarded and need to pay 52% tax. The stock broker automatically sells 6 of the 10 stock units. The remaining 4 stock units are released to my broker account where I can 1) Keep them there and let them appreciate or 2) Sell them and send the proceeds directly to my bank account.
Assume the share price is $5120 or £4100 each.
Do I need to declare the gross total amount of 10 stock units before they are taxed? i.e. 10 x £4100 = £41,000
Do I need to declare the amount of 4 stock units after 6 are sold to cover taxes? i.e. 4 x £4100 = £16,400
There is a big difference between declaring £41,000 vs £16400 and was seeking your guidance around this please?
Gross Pay for the month - This is the amount I am paid and DOES NOT subtract private medical cover and my pension salary sacrifice
Taxable pay for the month - This is the amount I am paid and DOES subtract private medical cover and my pension salary sacrifice
Total bonus, commission, or overtime between 6 April 2022 and 5 April 2023 - This is the one I am confused on. I have inserted £41,000, which is basically the value of the RSUs I will be awarded in gross in total before 5 April 2023 based on the share price today. I work for a US company who sell my stock to cover taxes at the time of vesting. The tax I typically pay for these RSUs based on historic vests is around 52%. Example, I get 10 stock units awarded and need to pay 52% tax. The stock broker automatically sells 6 of the 10 stock units. The remaining 4 stock units are released to my broker account where I can 1) Keep them there and let them appreciate or 2) Sell them and send the proceeds directly to my bank account.
Assume the share price is $5120 or £4100 each.
Do I need to declare the gross total amount of 10 stock units before they are taxed? i.e. 10 x £4100 = £41,000
Do I need to declare the amount of 4 stock units after 6 are sold to cover taxes? i.e. 4 x £4100 = £16,400
There is a big difference between declaring £41,000 vs £16400 and was seeking your guidance around this please?
0
Comments
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What were you sacrificing, if it was into a pension it wouldn't be part of the taxable income.0
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Salary sacrifice pension scheme - Under accumulations.Dazed_and_C0nfused said:What were you sacrificing, if it was into a pension it wouldn't be part of the taxable income.0 -
Deleting comment as irrelevant.0
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