Hi - Looking for some guidance on my below situation please:
I am employed by a Tech company who are headquartered in the US, but I work for the UK part of that business. I receive RSUs on a vesting schedule, and I am in the process of filing my tax return for FY22/23. During that FY I had two vest dates. On vesting, ~48% of the RSU value was sold to cover taxes, the remainder reinvested as shares. So as far as I am aware, i have already paid all due taxes on this RSU income. I have not cashed out any shares, so don't have capital gains responsibilities on those shares yet.
My 'Total for year' income on my P60 shows the total income from my basic salary + income from RSUs (the remainder that wasnt sold to cover taxes).
Whilst filing my tax return, I can see that my annual personal allowance has been reduced quite significantly, I believe because it is being calculated based on the total income (Basic salary + RSU income, which pushed my total income above the £100K threshold), rather than on just the basic salary amount. My assumption is this is incorrect, as it means my 'Total income on which tax is due' is higher than it should be, ie: becasue its assuming tax hasnt already been paid on the RSU proportion of my income.
So - 2 questions:
1. Should I record my income on my tax return, ie: should it be the total amount as per my P60 (including Base salary + RSU income), OR should it be just by base salary (becasue tax has already been paid on the RSUs)
2. Although my employer is US headquartered, I work for the UK division, and all other/standard taxes are paid via HMRC. Do i need to report RSUs as 'foreign income' in my tax return, or do anything differently? Im not aware if it actually classed as foreign income or not.
Thanks in advance!