Uk Tax & NI on Stock Option Exercise

Uk Tax & NI on Stock Option Exercise

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We have a UK based employee on our UK payroll who has exercised stock options on our US parent company's stock.  We have remitted the proceeds to the employee net of tax and employee's NI at his marginal rate.   Is Employers' NI payable and when is the tax and NI payable to HMRC ? Are there any specific reporting requirements ?

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By catlady
24th Oct 2016 22:27

Assuming that the options have not been approved by HMRC, then yes, employers NIC is payable.

The amount of the gain should be entered on the payslip and then the sum advanced to the employee deducted from net pay. The tax and NIC amounts should then be paid to HMRC as normal.

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