Yeah the BIK on the discount should be taxed through payroll now, see here: https://www.revenue.ie/en/additional-incomes/employment-related-shares/employee-share-purchase-plans.aspxUPDATE: Actually I believe payroll now stop the tax at source so there is no need as it appears on your payslip.
Same here, some of us. Also look into approved share scheme, some employers/payroll haven't heard of that either - https://www.revenue.ie/en/additional-incomes/employment-related-shares/approved-share-schemes.aspxDon't think my payroll department have heard that yet. Could this expose employees who had never declared tax on these? Although ours is treated like share options and we pay RTSO (well some of us do).
That's the way it should work, a large chunk of tax every 6 months, meaning lower net pay that month (unless you also sell the shares)I think the way ours is implemented it would be difficult to tax through payroll. We don't know the gain until the end of the 6 month cycle, then the tax could be a large chunk of your pay.
Thanks for the info, suspect that's what's happening in my company. Is there a reason it'd be done this way vs being handled through PAYE?In some circumstances an ESPP can be taxed as a share option. Ask your payroll department if they will be returning it as a share option as there is a specific employer return for this. If it is being returned as a share option then you'll need to pay tax through the RTSO within 30 days and file a Form 11 for the relevant year. Watch the timing on the tax payment as the interest rate is the daily equivalent of 11.75% per year. The Revenue do impose this in practice and it is a shocking rate. Far higher than for any other taxes.