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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 7971
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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Im enquiring on behalf of my partner, no, its to do with

Customer Question

hello....im enquiring on behalf of my partner
JA: Have you talked to a tax professional about this?
Customer: no
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: its to do with RSUs taking my partners salary over the 100k threshold and what that means for her personal allowance
Submitted: 10 days ago.
Category: Tax
Expert:  taxadvisor.uk replied 10 days ago.

Hello and welcome to JustAnswer. I’mCustomer a UK qualified accountant. Reviewing your question and will respond to you shortly.
Many thanks

Customer: replied 10 days ago.
basically her base salary and bonus comes to about 88k but shares that she was granted have now vested to take her overall compensation to around 122k. Now these shares are taxed 45% + 2% NIC when they vest in the form of shares being withheld - so if my partner received 100 shares, she only keeps 53. Now we sold quite a few shares last tax year and we went to accountant to work out the capital gains. The problem we're having now is that the accountant is saying that because her overall compensation went above 100k, she loses her tax allowance but how can that be if total value of shares awarded has already been taxed at 45%....am I right in thinking she should keep her personal allowance as the vested shared have already been taxed at the highest rate? Please help - we have a wedding to plan and accountant saying we owe almost 6k due to loss of personal allowance.
Expert:  taxadvisor.uk replied 10 days ago.

Thank you for your question.

Your accountant is correct in that you lose personal allowance if income exceeds £100k

Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000. This means your allowance is zero if your income is £125,140 or above. You'll also need to do a Self Assessment tax return.

More information on personal allowance on income over £100,000 here

https://www.gov.uk/income-tax-rates/income-over-100000

My aim is to give you a professional service. I hope this is helpful and answers your question.

If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 10 days ago.
but a large portion of that has already been taxed before its tabulated...
Expert:  taxadvisor.uk replied 10 days ago.

Thank you for your reply.

Your partner needs to file a self assessment tax return and tax deducted at source will be taken into account in the final tax payable calculation.

I hope this is helpful and answers your question.

Expert:  taxadvisor.uk replied 10 days ago.

Hi there

Just checking to see if you need me to clarify anything or if you have any additional questions - I am happy to help!

Many thanks