HMRC issues guidance on share-based payments made after the cessation of employment

January 7, 2012

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.


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.


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