Vesting Equity & Tax

Hello, I run a small business that has recently seen some growth. To help with that growth, I am taking on a co-founder by vesting them equity over 5 years. I know the new co-founder must pay income tax on the equity (and also capital gains tax when the time comes) but my question is this: If the new co-founder is vesting equity over 5 years (or longer) then do they pay the tax each month on what has been vested only? For example, if its a 5 year vesting period at £50,000 income tax, then do they pay £833.33 each month as the equity is vested at 1/60? Or would they be required to pay the full £50,000 at the start of the vesting period? Thank you in advance

Hi

Income tax is calculated using the 'arising basis'.  This means income is taxed in the year that it arises, so your partner would be taxed on the income he receives, as it arises.

Thank you