Employee Shares Scheme Law has been substantially amended affecting taxation returns issued from 1st July 2009. As a result, employees are now normally required to include the discount they receive on the issue of shares or options in their personal returns when prepared by their accountant. This, as a consequence, has in some instances required the payment of a pay as you go instalment payment (a payment of tax in advance on investment or business income).
Employees who are declaring income in their personal returns due to the issue or redemption of an employee share issue may receive a pay as you go instalment(s) in the 2012-13 year.
Accounting for the PAYGI
PAYG instalments, as stated earlier, is tax paid in advance. You should ask your accountant to vary the rate if you do not anticipate another employee share scheme taxable payment in the current financial year. Bear in mind however that should your estimated tax be less than 85% of your actual business or investment income taxation you may incur general interest charge.
This article is for general information only and sh
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