Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 06 Mar 2024 15:52:26 GMT by Luca Gasparini
Hi there, I am looking for some advice on how to represent my income on my tax return. I work for a multinational company with ties in both the UK and abroad; this company has different legal entities in each country. I spent a few years in the UK and as part of my employment I was given stock grants that vest over 4 years, before moving back to my home country working for the local subsidiary. The stock grants awarded to me while employed in the UK continue to vest after my departure, although I am no longer employed by the UK branch. I am neither tax resident nor domiciled in the UK; however, when any of the stock grants originally granted in the UK vests, the company withholds a part of the stock to pay for UK taxes on my behalf. When this happens I get a payslip, but I do not get a P60 at the end of the year. I have no (other) UK income nor employment. My formal employment with the UK branch of the company ended years ago, and I am now employed and work for a different legal entity located abroad. My questions: 1. Is the company correct to withhold and pay UK taxes on these vests, although I am no longer tax resident in the UK? 1. Do these vests count as UK employment income, although I am no longer employed by the UK company? 2. Should I still receive a P60 form from the UK company even though I am no longer employed, given that they apparently paid taxes in the UK on my behalf? 3. If no P60 is due, should I use the tax paid numbers from my payslip in my tax return? Appreciate any advice. Thank you
Posted Fri, 08 Mar 2024 12:47:29 GMT by HMRC Admin 20 Response
Hi Luca Gasparini,
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's not included in your P60, please include it in the box on the employment page for 'Tips and other payments not included on your P60'.
ERSM20193 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.  Employment Related Securities Manual ERSM20193 - Employment-related securities and options: what are securities: RSUs and dividend equivalents
Thank you.

You must be signed in to post in this forum.