Form 11 - Share Options-Self - extra 4% PRSI being charged?

[gargoil7]

Am I being charged an extra 4% PRSI above & beyond the 52% RTSO tax (40% IT, 8% USC + 4% PRSI) I already paid for ESPP in 2022, i.e. 56% total?

Context:
PAYE employee, availed of ESPP in 2022 so I'm classed as a 'chargeable person' & submitting Form 11 for 2022. For the gain on the discount allowed by my employer, no RTSO tax is paid through my employer.
In 2022; I paid my RTSO (52% of gain) to Revenue within 30 days & submitted RTSO1 form.

Now, in Form 11 for 2022, under PAYE/BIK/Pensions (2), there's the section 'Share Options exercised, released or assigned in 2022'.
I filled in the fields there for 'Enter total chargeable amount' [A] & 'Enter the amount of RTSO paid' .

Issue:
However, on the Calculations page under 'Calculations - Income Tax' it's added the 'Share Options-Self' figure [A], so it's increasing my total income by that amount & therefore my taxable income.
Plus, under '3.1 Computation - PRSI (self)' it shows the 'Share Options-Self' figure, with a 4% PRSI charge on that figure. That 4% figure is added to the section '4. computation of final liability' as 'PRSI due self' which is added to the 'Total amount of tax chargeable for this period'. It deducts the 'Relevant Share Opt Tax' but that's beside the point.

Does this look like I'm effectively being charged 4% PRSI twice for ESPP? i.e. an additional 4% PRSI on top of the 52% RTSO I already paid last year?
If so, should I submit an Expression of Doubt in the Form 11 & meanwhile try to phone Revenue self-assessment helpline tomorrow (unlikely to get through, yeah I know I left it late) to get their guidance?

 

[Ciru75]

The 52% RTSO includes 4% PRSI (along with 8% USC and 40% income tax). You should be charged 4% PRSI, 8% USC and 40% income tax on the share options on the form and that should be balanced by the 52% RTSO you've already paid.

 

[gargoil7]

The 52% RTSO includes 4% PRSI (along with 8% USC and 40% income tax).

Yes, this was my understanding.

You should be charged 4% PRSI, 8% USC and 40% income tax on the share options on the form

To confirm, which form are you referring to; RTSO form or Form 11?
If Form 11; on which section & panel do you mean? The only applicable location appears to be;
Panel: 'PAYE/BIK/Pensions (2)' panel
Section: 'Share Options exercised, released or assigned in 2022'
Fields: 'Enter total chargeable amount' (e.g. €100, for the sake of example) & 'Enter the amount of RTSO paid' (e.g. €52. i.e. 52% of 100) Both of which I filled in. This then goes towards the 'Calculations' panel entries, resulting in the issues in OP.

and that should be balanced by the 52% RTSO you've already paid

Except it doesn't balance out to zero, as I believe it should. It does deduct the 'Relevant Share Opt Tax', which is the figure from 'Enter the amount of RTSO paid' (i.e. €52).
But it's also charging 4% extra PRSI on top of this, which in turn has a cascading negative impact on Total Income, Net Position Income, Taxable Income, Tax Chargeable & Net USC liability-Self & ultimately how much Revenue (over) take from me.


Has anyone else seen or had this issue or know how to avoid it?

 

[S class]

.

 

[gargoil7]

What I would do is firstly complete the form 11 with the share options included. Then do the calculation and check at the end of the form 11 to see what amount of tax is due.

Then remove the share options and redo the calculation and again check the tax due.

The difference between the two tax due amounts is the total tax you are being charged on your share options.

Thanks S class. So I did just that. Calculation 1: with Share Options fields populated. Calcuation 2: with Share Options fields left blank.
And the result was;

• Total tax chargeable was higher for Calc 1 vs Calc 2.
  • This due to Calc 1 having higher IT & including the PRSI due self (i.e. the 4% PRSI on the Share Option chargebable amount)
• Total credits/reliefs were higher for Calc1. This due to inclusion of the Relevant Share Opt. Tax (i.e. the 52% figure I paid last year)
• The Total Liability figure was the exact same for both (virtually, bar a few cents in favour of Calc 2). In my case Overpaid (due mainly to AVC claim).

TLDR; filling the Share Options fields had no negligable effect either way on the Total Liability & therefore what I'm due from Revenue. Which is a relief.

False alarm on my part it seems (unless I'm overlooking something but I don't think I am). So I'm ready to submit bar an unrelated question/unkown that re preliminary tax that I'll post separately on here on AAM.

 

[S class]

You are on the ball there. I submitted that post and then reread your post and thought I was not improving your situation, so I deleted it.
Good to know it was helpful.
I always find some of the calculation methods in form 11 impossible to figure out.

 

[gargoil7]

You are on the ball there. I submitted that post and then reread your post and thought I was not improving your situation, so I deleted it.
Good to know it was helpful.
I always find some of the calculation methods in form 11 impossible to figure out.

Yes, I (& many others it seems) really wish Revenue would add some build in some self-help or example calculations into the IT Form 11. It would undoubtedly save Revenue a tonne of enquiries (online & by phone), labour costs & even possibly increase tax take.