Civil Service do not know how i should pay tax on shares!

fret_wimp2

Im a bit of a pickle of my own making. i got a small amount of shares from my last company, spread out over 4 years. Amount is less than 2500 so its not a huge amount, but the thing is i never paid tax on them.

Im pretty sure i should have declared them yearly, but i didnt know how.

Ive since rang up various civil service (revenue) departmets, who just direct me to other departments, who direct me to other departments!

If there was a building i could go to, chat to Mr/Ms Revenue and give him/her the money I would, but they dont know how to take my money!

THe problem is the company was an american company and so tax was not directly removed from my pay.

Anyone know how i should proceed here?

gerrybbadd

Maybe seek independent financial advice from a tax advisor or accountant

fret_wimp2

gerrybbadd wrote: »

Maybe seek independent financial advice from a tax advisor or accountant

I considered that, but i was quoted 400 euros for help on doing a tax return. If i owed 10k or something thats worth it, but 400 euros is 1/5 of the total shares! it is just too much to pay.

Besides, revenue should know this stuff.

Toblerone1978

fret_wimp2 wrote: »

I considered that, but i was quoted 400 euros for help on doing a tax return. If i owed 10k or something thats worth it, but 400 euros is 1/5 of the total shares! it is just too much to pay.

Besides, revenue should know this stuff.

Call into your local tax office!

gerrybbadd

Toblerone1978 wrote: »

Call into your local tax office!

This could be the best thing to do actually. They can't really fob you off then, and they'd have to get someone to speak with you that would know about shares in the office.

Dermoth

There are different types of shares with different treatments- for example Restricted Stock Units (RSUs), share options, approved and unapproved schemes. Hence the lack of a straight answer. I think you should be able to get a tax advisor for less than what you've been quoted. Either way, I think it's money well spent based on personal experience.

Daxve

Assuming they are ordinary non restricted shares just declare the value of shares received as a benefit from employment. Work out how much you received each year - open market value of shares on date received multiplied by number of shares received.

Complete a Form 12 (assuming you are a PAYE employee only) for each of the relevant years or I assume this can be done through PAYE anytime as well - I can't access it at the moment. Tax will be due at your marginal rate plus PRSI, Income Levy or USC depending on the years.

For example on Form 12 2010 the relevant section is section 8. Send in the payment with the form or wait for a balancing statement to issue an send in payment based on the assessment.

If you have already received balancing statements for these years just write to your local tax office asking them to include the additional taxable benefit and issue an amended balancing statement.

From January 1st 2011 shares are to be treated as notional pay and the employer must deal with all tax issues arising under the PAYE system.

Tax briefing 02/2011

http://www.revenue.ie/en/practitioner/tax-briefing/2011/no-022011.html

relax carry on

fret_wimp2 wrote: »

Im a bit of a pickle of my own making. i got a small amount of shares from my last company, spread out over 4 years. Amount is less than 2500 so its not a huge amount, but the thing is i never paid tax on them.

Im pretty sure i should have declared them yearly, but i didnt know how.

Ive since rang up various civil service (revenue) departmets, who just direct me to other departments, who direct me to other departments!

If there was a building i could go to, chat to Mr/Ms Revenue and give him/her the money I would, but they dont know how to take my money!

THe problem is the company was an american company and so tax was not directly removed from my pay.

Anyone know how i should proceed here?

The reason you have been unable to get a straight answer from Revenue is that there are quite a few different types of shares schemes with differing taxation rules; which can take a while to give you the correct answer. These types of queries should always be addressed in writing with as much info as possible to your local (depending on your circumstances) PAYE or self assessing section. Put your PPS number in the contact locator on the Revenue website for the correct email address or postal address.

You can of course use a taxation expert but I'd try the free way first.