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Where Taxpayers and Advisers Meet

PAYE and NIC on vesting shares

inayellowshirt
Posts:2
Joined:Thu Jan 27, 2022 11:54 pm
PAYE and NIC on vesting shares

Postby inayellowshirt » Fri Jan 28, 2022 10:46 am

Hello, and thank you for allowing me to this forum with this question.

Background

I am a UK resident and employee, salary in range of £40-50k and I have never been told I have to complete a self assessment. Since 2017 I have been receiving Restricted Stock Awards from my employer as part of an employee retention scheme, these vested annually over a three year period with a new allocation being added each year. When this started my employer was a Private company, and the shares could not be traded but were given a nominal value of around $8-10 per share, but with the hope of if we turned public then they would then be worth something.

On October 2020 our company announced a merger with a Public company on the NYSE, the merger completed in March 2021.

My main question is below

My 2021 RSA's vested as normal on 1st Jan 2021, and the merger completed in March 2021, upon which my vested and unvested shares got converted to match their value in shares in the public trading company.

Last week I received a notification from our finance department that my RSA's that vested on 1/1/21 were now being treated as Readibly Convertable Assets at the rate of their new value that occured when the merger completed in March 22 due to the signing of the merger agreement on October 2021, and there I now owed around £4k in Tax on that vesting. The company has paid this amount to the HMRC and are now asking me for it. They say the decision to treat them as RCA's came from advice from P.W.C. who I assume is Price Waterman Coopers.

I would like to know if the shares being treated this way is in line with normal UK TAX law/requirements. I feel that as I was still unable to trade in those shares at the time, and the deal was not completed till Mar 21 makes this a little unfair.

My 2022 vesting shares were dealt with for Tax by them taking away a % to pay the PAYE and NIC which I understand and am happy with, but I do not feel comfortable with the decision on the 21 vesting and need some advice.

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: PAYE and NIC on vesting shares

Postby darthblingbling » Fri Jan 28, 2022 5:58 pm

Yes it is.

Love that Price Waterman Cooper's, must be the Aldi version.

inayellowshirt
Posts:2
Joined:Thu Jan 27, 2022 11:54 pm

Re: PAYE and NIC on vesting shares

Postby inayellowshirt » Tue Feb 01, 2022 6:04 pm

Love that Price Waterman Cooper's, must be the Aldi version.
Thank you for replying.

And yes... good spot, maybe thats why I doubted the advice :oops:


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