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RSUs & Net income/tax

BexLondon
Posts: 6 Forumite


in Cutting tax
Can anyone tell me if RSUs count towards net income if you pay the tax at source once vested? My company offers 2 ways to pay tax on our RSUs once vested 1) as income on pay-roll or 2) a % of the RSUs to cover the tax. With option 2 would it count towards net income still?
This is relevant as I earn over £100k and have a child at nursery so trying to keep my income below through salary sacrifice, so need to know what counts as net income to HMRC. My company is not yet public so I won't actually receive the income, only the tax liability once vested.
This is relevant as I earn over £100k and have a child at nursery so trying to keep my income below through salary sacrifice, so need to know what counts as net income to HMRC. My company is not yet public so I won't actually receive the income, only the tax liability once vested.
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Comments
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I have rsu’s that vest in about a year.My understanding is that they would count towards that 100k threshold.Here’s a Reddit link that discuss this. (Be warned that Reddit has info & misinfo…
https://www.reddit.com/r/UKPersonalFinance/comments/ubz72l/comment/i67b7n5/1 -
RSUs do count toward ANI as soon as they vest.
"Real knowledge is to know the extent of one's ignorance" - Confucius0 -
Hello but do they count with option 2 as mentioned above?0
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Yes. Option 2 just sells sufficient to cover the withholding tax, but you have still received a taxable benefit for the full amount. You just hold some of it as shares rather than cash"Real knowledge is to know the extent of one's ignorance" - Confucius0
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