TAX/NI Query

[PokerBroker]

I have had a look online but couldn't really find what I was looking for.   

A former employer gifted me shares 3 years ago,I was supposed to stay there for 3 years to enable me to cash them in.   However I left, but as part of the package they agreed to honour my shares.   They were encashed last week and I had worked out I would pay 10% dividend on them but having received confirmation of the sale from Equiniti today I have paid both basic rate of tax @ 20% and National Insurance Contributions.   I never expected to pay NI.  The Tax I sort of understand.

Anyone able to advise?  I had made some great plans for spending this bonus but I am now in receipt of much less than I had hoped, will I be able to recliam this through self assessment? 

[Longines]

Unless they were provided through a tax-efficient scheme then it's likely to be correct. Otherwise everyone would be paid in shares and avoid NI.

[PokerBroker]

Makes perfect sense. 

[EvilPie]

They'd have to be classed as a benefit in kind so yeah they're subject to tax and NI the same as any salary.

https://www.gov.uk/guidance/non-cash-pay-shares-commodities-you-provide-to-your-employees

[OverTheBorder]

Any idea if it was a SAYE, CSOP/EMI, ESOPS, SIP of unapproved share plan? The answer to that will drive the answer

[PokerBroker]

Any idea if it was a SAYE, CSOP/EMI, ESOPS, SIP of unapproved share plan? The answer to that will drive the answer

I had a separate share plan/share save scheme which I can draw down on in September, but this was purely a gift of shares due to length of service when the company floated.   I huess I just need to suck this one up.   

[BulldozerD]

Depending on the sums involved, it might be worth taking proper advice on your tax position.
The details are too sketchy to advise properly. If you were outright gifted shares at the time then I would have expected you to have suffered tax at the point of the gift (3years ago)

[PokerBroker]

Depending on the sums involved, it might be worth taking proper advice on your tax position.
The details are too sketchy to advise properly. If you were outright gifted shares at the time then I would have expected you to have suffered tax at the point of the gift (3years ago)

They were gifted 3 years ago under the provision that I had to be employed by the company for a further 3 years no monetary offer was given at the time.   When I left, it was part of a re-structure of my role and as such the company agreed to honour the shares and my share save scheme.   It's a little mess, the shares themselve it's not a huge amount but on my bag of a beer mat calculations it was enough to get a new kitchen fitted and get some flights booked for Vegas (cheap seats)  but I'll now be putting the holiday on the back burner.