How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 7216
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I have a long term incentive plan that has matured, in the

Customer Question

I have a long term incentive plan that has matured, in the statement it shows shares sold before vesting that take account of withholding tax. Question does that mean tax is settled, or do I declare in my tax return, if so where does the withholding tax already taken go?
JA: Which tax year are you filing for?
Customer: 2018-2019
JA: Anything else you want the Accountant to know before I connect you?
Customer: No.
Submitted: 12 days ago.
Category: Tax
Expert:  Adam Hunt replied 12 days ago.

I am one of the experts. Your employer might have deducted tax already via paye. Is that the case?

Customer: replied 12 days ago.
No not through PAYE, but the statement on the LTIP share site shows Withholding tax that has been taken - I don’t know what withholding tax is?
Expert:  Adam Hunt replied 12 days ago.

Sorry i am stuck somewhere so opting out. One of other experts will get back to you now. Good luck.

Expert:  bigduckontax replied 12 days ago.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Is this Incentive Plan HMRC approved?

Customer: replied 12 days ago.
it must be - I work for a FTSE 50.
Expert:  bigduckontax replied 12 days ago.

Then there is no Income Tax (IT) due on vesting if it is approved. The fact that tax has been deducted puts that in doubt. You will have to ascertain the true position regarding HMRC approval of the scheme.

Customer: replied 12 days ago.
It’s the “withholding tax” that I don’t understand..
Expert:  bigduckontax replied 12 days ago.

Exactly, it sound suspiciously like an US company.

Customer: replied 12 days ago.
Nope UK company the bit of interest is here
Customer: replied 12 days ago.
The para in the plan rules...
Expert:  bigduckontax replied 12 days ago.

Hmm, you will probably find that you have been over taxed at the conclusion of the tax year.

Customer: replied 12 days ago.
What leads to that thought?
Customer: replied 12 days ago.
Do I need to declare this award on my tax return if the withholding tax has been taken?
Expert:  bigduckontax replied 12 days ago.

In my opinion, no assuming that the scheme was approved.