Proceeds from BAYE treated as income?
Discussion
A bit of an odd one....
I left an employer in 2015, got letter from scheme admin and instructed them to sell shares to meet tax and ni liability for non vested and transfer the remainder, which they did.
Fast forward to a couple of weeks ago and HMRC are saying the amount sold and tax paid are being reported as income and I owe them more tax and interest.......I thought this, if anything, would have been CGT on disposal (not even close to the limit).
Old employer didn’t send any payslip stating they’d classed it as income so I filled in tax return using P45 futures.....
Annoying, and I’m still confused......
Can anyone explain why this is classed as earned/employment income?
I left an employer in 2015, got letter from scheme admin and instructed them to sell shares to meet tax and ni liability for non vested and transfer the remainder, which they did.
Fast forward to a couple of weeks ago and HMRC are saying the amount sold and tax paid are being reported as income and I owe them more tax and interest.......I thought this, if anything, would have been CGT on disposal (not even close to the limit).
Old employer didn’t send any payslip stating they’d classed it as income so I filled in tax return using P45 futures.....
Annoying, and I’m still confused......
Can anyone explain why this is classed as earned/employment income?
When employee owned shares are turned into cash, whether the transaction is treated under Capital Gains Tax or Income Tax depends very much on the circumstances of the individual scheme and the timing of the disposal.
BEFORE people sell these types of sharers, they should find out from their employers how the sale will be treated.
BEFORE people sell these types of sharers, they should find out from their employers how the sale will be treated.
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