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Posted Tue, 01 Aug 2023 19:50:36 GMT by Username177
Hello, My employer has an equity programme where employees are granted shares. This year I received a dividend from the share company, which I believe is registered in the Cayman Islands. The "bonus"/dividend was paid through my normal payroll process in the UK. On the notice from my employer it reads "Payments on award shares are employment bonuses and will be paid net of tax in the next payroll" Is this foreign income, since it was paid by my normal UK employer through normal UK payroll? Do I need to report this bonus/dividend in foreign income? I don't know how much tax I paid specifically for that bonus since it was just included in my payroll payslip amount. It's already in my P60 as total pay received Thank you!
Posted Tue, 08 Aug 2023 13:02:08 GMT by HMRC Admin 32

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 on 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

Thank you.

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