Reclaim Overpaid Tax On SIP Shares Sale

drlabman · 7 June 2018 at 9:33PM

I recently left my job and had to pay tax on the SIP shares I hadn't held for the requisite number of years. The tax paid was at the 0T rate, as required, so I overpaid by a fair amount. I know I'm able to reclaim it from HMRC but does anyone know the easiest way to do this. Surely I don't have to submit a Self Assessment Form do I? My tax situation is quite simple, normally PAYE only.

Dazed_and_confused · 7 June 2018 at 10:44PM

The 0T tax code sounds like the employer deducted tax like they would do for normal PAYE earnings.

HMRC should review things this time next year (between May/June time and the autumn of 2019) and automatically make any repayment due to you for the year as whole.

Unless this payment tipped you over the 100k income threshold (or into the High Income Child Benefit Charge) I doubt it would entail completion of a Self Assessment return.

NB. If "recently" was as far back as the previous tax year then they should review things this summer.

drlabman · 8 June 2018 at 9:12AM

Dazed_and_confused wrote: »

The 0T tax code sounds like the employer deducted tax like they would do for normal PAYE earnings.

HMRC should review things this time next year (between May/June time and the autumn of 2019) and automatically make any repayment due to you for the year as whole.

Unless this payment tipped you over the 100k income threshold (or into the High Income Child Benefit Charge) I doubt it would entail completion of a Self Assessment return.

NB. If "recently" was as far back as the previous tax year then they should review things this summer.

Well, it was Yorkshire BS who were running the scheme, so they paid the tax from the release of the shares (not my employer). I'm pretty sure they told me that the tax belonged to tax year 2017/18, although I will check. I should say that I don't intend working again (early retirement of sorts). So, if I understand correctly, HMRC should review my case this summer and correct any overpayment - presumably by refund, because I no longer work - without me having to do anything?

MichelleUK · 8 June 2018 at 6:19PM

drlabman wrote: »

I recently left my job and had to pay tax on the SIP shares I hadn't held for the requisite number of years. The tax paid was at the 0T rate, as required, so I overpaid by a fair amount. I know I'm able to reclaim it from HMRC but does anyone know the easiest way to do this. Surely I don't have to submit a Self Assessment Form do I? My tax situation is quite simple, normally PAYE only.

https://www.gov.uk/government/publications/income-tax-claiming-tax-back-when-you-have-stopped-working-p50

Reclaim Overpaid Tax On SIP Shares Sale

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