RTSO01 - ESSP late tax payment and interest

jon1981

Hi,

I sold my ESPP options about 60 days ago and I just realised I was meant to pay the tax within 30 days or else interest is applied. I'm looking around the revenue site and I can't find out how I pay calculate or pay the interest?

Any information on this would be helpful!

thanks
J

barneystinson

jon1981 wrote: »

Hi,

I sold my ESPP options about 60 days ago and I just realised I was meant to pay the tax within 30 days or else interest is applied. I'm looking around the revenue site and I can't find out how I pay calculate or pay the interest?

Any information on this would be helpful!

thanks
J

Calculate and pay the tax, if they want interest they'll ask you for it. The interest charge for a month would be less than 1% of the tax due, so unless you had a fairly substantial tax bill it's unlikely it'd be pursued.

jon1981

barneystinson wrote: »

Calculate and pay the tax, if they want interest they'll ask you for it. The interest charge for a month would be less than 1% of the tax due, so unless you had a fairly substantial tax bill it's unlikely it'd be pursued.

thanks

It's pretty small to be fair, we are talking hundreds here not thousands. I just didn't want a a situation where they come looking for the interest in 20 yrs time and the interest is then in the thousands But I presume interest is only applied up until the point at which I pay the tax?

barneystinson

jon1981 wrote: »

thanks

It's pretty small to be fair, we are talking hundreds here not thousands. I just didn't want a a situation where they come looking for the interest in 20 yrs time and the interest is then in the thousands But I presume interest is only applied up until the point at which I pay the tax?

Yep, the interest crystallises at the point you pay the tax, and there's no interest on interest.

jon1981

Thank you, that clears up my concerns.

dbran

Dont forget that you also have a tax return to do.

Regards


dbran

jon1981

Yeah I have to do one for my RSU shares too. It's an R11 form right?

Still coming up to speed on all this. The amount of shares I have doesn't really justify using an accountant so will learn to do it myself.

dbran

Yeah. All those guys in google who got revenue audited after doing their own returns cant be wrong. Im sure one of them got it right and didnt have to pay any interest or penalties.

:D:D:D