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Where Taxpayers and Advisers Meet

LTIP Withdrawal

Posts: 1
Joined: Sat Oct 07, 2017 8:57 am

LTIP Withdrawal

Postby Iamchunx » Sat Oct 07, 2017 9:04 am

Appreciate any help please.

I am due an LTIP payment from leaving my current employer and they want to pay me through PAYE and hence I am going to pay 40% tax etc on it.

I could put a large chunk into my pension tax free but the amount is way over my allowance so most of it will be income tax payable.

Do I have to take the sum via PAYE? Or is there more efficient way of doing this?

The LTIP fund is offshore.



Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: LTIP Withdrawal

Postby AmanSood » Sat Oct 07, 2017 6:51 pm

Assuming of course you are UK tax resident and the LTIP was earned/related to UK duties then unfortunately it does have to be paid via PAYE with both tax and NI being operated... So you may still be better off putting it into your pension as you would save the NI on this at 2%.
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