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Where Taxpayers and Advisers Meet

NI Paid on Shares

daint
Posts: 1
Joined: Fri Aug 17, 2018 11:13 am

NI Paid on Shares

Postby daint » Fri Aug 17, 2018 11:25 am

Hello all,

I'm wondering if anyone is able to help, I'm fairly inexperienced in this area so I may not use the correct terminology but hopefully I'll be able to explain clearly enough.

I'm a UK citizen and resident who worked for a US business for about 3 years starting early 2012. Upon joining the company I was issues a number of shares that would begin to vest after 12 months, then every 6 months after that until all shares had vested - although I left prior to 100% vesting. I ended up with about 50% of the shares vested. I don't believe I was ever paid any dividends (if that's even possible?).

When I set up the share payments I was led to believe that it was best to pay UK tax at that point, rather than upon selling as this would be a more cost effective way of eventually getting hold of the cash. Each time the shares vested I was given a payslip by my employer with details about the tax and NI contributions paid, and it seemed that a number of shares were sold at the point of vesting to cover the tax and therefore this appeared to be what the payslip was in relation to. I recall checking through at the time and it seemed to make sense - and was in line with many other employees in a similar boat.

Following a recent conversation, someone mentioned that I might be able to claim back the NI paid on these shares sold (if I've understood correctly). Upon each vest(ment?) I appeared to pay the following:
[*] Tax (code 100L)
NI (Category A)
Eers NI on Stock Income
RSU Tax Withheld (which was always negative)

And the net result of this payslip was usually near-zero payment / deduction.

Can anyone point me in the right direction on which way to go next?

Thanks
Rob

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

Re: NI Paid on Shares

Postby AmanSood » Sun Aug 19, 2018 9:14 am

Hello all,

I'm wondering if anyone is able to help, I'm fairly inexperienced in this area so I may not use the correct terminology but hopefully I'll be able to explain clearly enough.

I'm a UK citizen and resident who worked for a US business for about 3 years starting early 2012. Upon joining the company I was issues a number of shares that would begin to vest after 12 months, then every 6 months after that until all shares had vested - although I left prior to 100% vesting. I ended up with about 50% of the shares vested. I don't believe I was ever paid any dividends (if that's even possible?).

When I set up the share payments I was led to believe that it was best to pay UK tax at that point, rather than upon selling as this would be a more cost effective way of eventually getting hold of the cash. Each time the shares vested I was given a payslip by my employer with details about the tax and NI contributions paid, and it seemed that a number of shares were sold at the point of vesting to cover the tax and therefore this appeared to be what the payslip was in relation to. I recall checking through at the time and it seemed to make sense - and was in line with many other employees in a similar boat.

Following a recent conversation, someone mentioned that I might be able to claim back the NI paid on these shares sold (if I've understood correctly). Upon each vest(ment?) I appeared to pay the following:
[*] Tax (code 100L)
NI (Category A)
Eers NI on Stock Income
RSU Tax Withheld (which was always negative)

And the net result of this payslip was usually near-zero payment / deduction.

Can anyone point me in the right direction on which way to go next?

Thanks
Rob
Hi Rob

Additional information needed to be able to advise but on what basis do you think you will be due a refund of the NI paid? Were you already paying social security in another country? Were you on assignment in the US or did you transfer permanently to the US? etc. Depending on the amount of NI you think you may have overpaid, it may be worthwhile to speak to an advisor to review all the facts and confirm whether you are entitled to a refund and they can then support you with claiming this from HMRC.

Thanks

Aman
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155


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