HMRC issues guidance on share-based payments made after the cessation of employment
This guidance sets out answers to frequently asked questions concerning the application of the ‘0T’ tax code to share-based payments made following the cessation of employment.
From 6 April 2012 the 0T tax code must be applied to share-based payments made following the termination of employment and the issue of the P45. Please see the link to the Abbiss Cadres article in the Resources section below which sets out details of this change.
The most interesting of the points covered in HMRC’s guidance is that where an NT (no tax) tax code is in effect prior to the employee leaving employment, the 0T code should not be operated and the NT code should continue to be applied.
Resources
Change to way tax is withheld from post-termination share based earnings
Payments of share-based earnings made after an employment has ceased that have not been included in Form P45
For further information or to discuss the issues raised, please contact Guy Abbiss, or John Mooney on +44 (0)20 3051 5711.
CELIA Alliance
CELIA Alliance members are identified here. Members of the CELIA Alliance are each independent law firms and do not practice law jointly with any other member of the CELIA Alliance. “CELIA Alliance” and “CELIA” are not trading names. For more information about the CELIA Alliance click here.
Disclaimer
Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this newsletter. For further legal information click here.
Copying
If you would like to copy or otherwise reproduce this article then you may do so provided that: (1) any such copy or reproduction is for your own personal use or if it is made available to any third party it is done so on a free of charge basis; and (2) the article is reproduced in full together with the contact details, disclaimer and any logos as they appear on each article.
