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  • RE: Order for employer national insurance (stock options exercise)

    Could you help me, please?
  • RE: Order for employer national insurance (stock options exercise)

    Thank you. I contacted shareschemes@hmrc.gov.uk regarding this and after some time received a response from them. Based on the response, it looks like that team's work is related to the administration of share schemes and they do not provide advice regarding taxation queries in relation to Income Tax and National Insurance Contributions. My guess is that the first question in this thread could be quite basic although it also may be quite complex at the same time as: (a) it is at the intersection of Income Tax and National Insurance and (b) also, as I understand (I may be wrong), usually the order does not matter for National Insurance but it seems it matters for some stock options exercises. It is possible that the first question affects many cases of stock options exercise but I could not find any specific, relevant guidance regarding this. Having an answer may be beneficial for many stock options exercise cases. Given that the team whose email is shareschemes@hmrc.gov.uk can't help, could you help me with the questions, please?
  • RE: Information in online Self Assessment for a deduction related to employer NIC for stock options

    HMRC Admin 32, thank you. As I wrote previously in this thread, "As far as I understand, it was not a formal 'election'. Therefore, I presume it was a NICs 'agreement' or similar." HMRC Admin 20 wrote in this thread: "You would deduct this amount from your income when calculating the tax due". Could you help me with my question(s) from my previous message in this thread, please?
  • RE: Information in online Self Assessment for a deduction related to employer NIC for stock options

    > You would deduct this amount from your income when calculating the tax due. Thank you very much. It is very helpful. As I understand, I can deduct this amount from my income. Could you advise me, please, how should it be done in my case (as per the details in this thread) in the online Self Assessment for this (for deducting the employer national insurance payable by the employee): 1. Can and should I use, e.g., '[Box 20 ]Other expenses and capital allowances' ('Employment expenses', 'Employment') (or its equivalent, if any, in the online form) for specifying the amount for this deduction? 2. Or, can and should I use, e.g., '[Box 6 ]Post-cessation trade relief and certain other losses' ('Other tax reliefs', 'Additional information') (or its equivalent, if any, in the online form) for specifying the amount for this deduction? 3. Or, can and should I reduce the income amount for the '[Box 1 ]Pay from this employment – the total from your P45 or P60' ('Employment') (or its equivalent, if any, in the online form)? 4. Or, can I do something else for this deduction in the online Self Assessment?
  • RE: Information in online Self Assessment for a deduction related to employer NIC for stock options

    Thank you very much for your reply, HMRC Admin 5. I am sorry, section 481 of ITEPA03 says that: 'Relief is available under this section against an amount counting as employment income under section 476 if [...]' and that 'Relief under this section is given by way of deduction from the amount otherwise counting as employment income'. (And ERSM110520 is relevant as well, as I understand.) It seems to me that per the legislation the relief 'is available' and it 'is given by way of deduction from the amount otherwise counting as employment income'. As I wrote before: The money for the employer NICs payable by me (the employee) was with my employer before 5 June following the tax year in which the relevant stock options transaction(s) occurred. I see the employer NI 'paid' by me in my payslip. So, there was employer NI payable by me (the employee) (and it was before the relevant 5 June). However, my employer did not deduct it from my income tax, as far as I understand. Could you advise me, please, can I use the relief as per section 481 of ITEPA03? If I can, how can I use it? If I can't, could you advise me, please, why I can't use it?
  • Claiming losses and also any other claim or election for Capital Gains Tax for shares

    As I understand, I had losses for Capital Gains Tax in relation to shares in the tax year 2022-2023. The shares were from exercised stock options and distributed restricted stock units. As far as I understand, there was no any tax advantages ( https://www.gov.uk/tax-employee-share-schemes ) for that. Could you advise me, please, in this case do I need to provide any code for "If you’re making any claim or election, put the relevant code in the box" (or its equivalent) in online Self Assessment? For example, do I need to provide code 'ESH' for 'Employee Shares'? My guess is that I don't need to provide that code but I am not sure. In addition to that: as there should be capital losses for me for the tax year, I presume that the losses should be provided in 'Losses available to be carried forward' (or its equivalent). Could you advise me, please, do I need to do anything else to claim those losses and carry them forward to future tax year(s)? For example, do I need to use any code like 'OTH' (for 'Other claims')? (I guess I don't need to.)
  • RE: Information in online Self Assessment for a deduction related to employer NIC for stock options

    Thank you very much. I am sorry, my query is not about CGT but it is about income tax and employer national insurance. (You mentioned 'the computation for CGT'.) I guess 'TP' means tax payer. I am sorry, I am not sure what does 'like 1' mean. As far as I understand, it was not a formal 'election'. Therefore, I presume it was a NICs 'agreement' or similar. The money for the employer NICs payable by me (the employee) was with my employer before 5 June following the tax year in which the relevant stock options transaction(s) occurred. I see the employer NI 'paid' by me in my payslip. So, there was employer NI payable by me (the employee) (and it was before the relevant 5 June). However, my employer did not deduct it from my income tax, as far as I understand. Could you advise me, please, in such a case (including taking into account that my employer has been in administration), what should I do? Can I use the equivalent (?) of 'Box 20 Other expenses and capital allowances' ('Employment expenses') in the online Self Assessment to provide there a value for the employer national insurance payable by the employee?
  • RE: Information in online Self Assessment for a deduction related to employer NIC for stock options

    Thank you very much. As far as I understand, my employer did not reduce the income for income tax by the employer national insurance payable by the employee. My employer has been in administration. It is potentially unlikely now that it can now be resolved with the employer. Could you advise me, please, in such a case, what should I do? Can I use the equivalent (?) of 'Box 20 Other expenses and capital allowances' ('Employment expenses') in the online Self Assessment to provide there a value for the employer national insurance payable by the employee?
  • RE: Information in online Self Assessment for a deduction related to employer NIC for stock options

    Thank you very much. Regarding (2): > You will need to use the working sheets that are inlcuded on the HS305 that you referred to in your original query. My UK employer processed the stock options exercise (for income) via its payroll. Income tax and national insurance contributions were paid by my UK employer and things were reflected in my payslips. My understanding (I may be wrong) of HS305 is that HS305 is (at least mostly) for the Self Assessment Additional information. For example, HS305 says: > You do not complete the ‘Share schemes’ box for taxable amounts which your employer has fully taxed. Normally these amounts are already included in your P60 (or, where you’ve left employment, P45) which are included in the Employment pages. Based on my current understanding, I don't need to fill the Additional information section(s) in in regard to the stock options exercise (for income) since my UK employer already processed it via its payroll and the amount(s) for the stock options exercise (regarding income) would be in the Employment section(s). Because of that, even if I use the working sheets, I am not sure where I should put figure(s) for the income tax relief in Self Assessment. However, I still would like to claim the income tax relief to deduct the employer NICs payable by me for income tax. Could you advise me, please, in my case, since my UK employer already processed the stock options exercise via its payroll (but my employer did not reduce the income tax based on the income tax relief due to the employer NICs payable by me), where in Self Assessment can I claim the income tax relief?
  • RE: Order for employer national insurance (stock options exercise)

    Hello. Thank you. I tried to call that number but unfortunately the person I spoke with could not answer my question. It seems the NI helpline may be unable to advise on this question. Could you advise me, please, what additional information may be required for this? Is there any manual or information regarding the order for such a situation?