Taxation of restricted stock units paid gross of tax

Hi I have some RSUs redeeming in May. I have the option of taking these Gross as a quantity of shares, or a net share quantity (still a set number of shares but fewer, not a cash amount) with my employer paying the tax due by way of a share sale. I earn less than £150,000 so I am not subject to a self assessment, and this redemption does not change that position. Are you able to please let me know, if I opt to take the gross shares: 1. How do I ensure HMRC is made aware of this income? 2. When is the tax due? 3. How do I pay the tax? Thanks

Hi,

As the payment is from your employer, the income should be shown in the employment section if it is included in your P60. You would then claim credit for the tax in the foreign section under 'Employment, self-employment and other income which you paid foreign tax on'.

If it is not included in your P60, please include it on the box on the employment page for 'Tips and other payments not included on your P60'. The following guidance advises that when RSUs payout at the market value on what is called "dividend equivalents" in either cash or shares, such payments will generally be taxed as earnings in the year they are received:

ERSM20193 - Employment-related securities and options: what are securities: RSUs and dividend equivalents

Thank you.