RTSO payment options for PAYE employees in 2016

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RMGC11

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Hi all,

I've been lurking for a long time (and my previous username from a couple of years ago seems to have expired/disappeared), so posting from a fresh account. Looking forward to any advice on the following situation:

I am currently a PAYE employee, with the bulk of my income coming from that.
I an enrolled through an ESPP scheme at work through which I can buy shares in my company at a small discount.
The total amount of ESPP gain made over 2015 is around 1k, which I've paid through sending postal orders for the proper tax amount ( income tax + PRSI + USC % from the gain) together with Form RTSO1.
I've also declared US Dividends through PAYE online (for a gross amount under 1k as well).

I don't expect my non-PAYE income (composed of ESPP share option gains + US Dividends + CGT gains) to exceed 3k.
Note: from I can see, the latest threshold is 5k (apologies, can't post links yet).


Upon reading this 9 year old thread:
askaboutmoney: "does-my-espp-make-me-self-assessed.31659"​
and the following tax briefing:
Amended definition of "chargeable person" - Section 14 Finance Act 2005​

It seems that in my case, I should be able to deal with the small amounts of tax I need to pay for RTSO through tax credit adjustment (and with CGT & dividends through PAYE Anytime).

My questions:
  • For 2015 - given that I submitted the RTSO forms and the payments - am I now considered a chargeable person and now need to submit Form11? (Even though my total non-PAYE income is under the threshold of 5k?)

  • If that's the case: does registering for self-assessment and submitting Form11 means that I now need to use ROS instead of PAYE Anytime for submitting additional US dividends received etc? It seems that using PAYE Anytime is much easier to use than ROS.

  • Can I pay RTSO online through an electronic bank transfer? My queries to the Collector General in the PAYE Anytime emailing system have been left unanswered there, even though IT72 seems to suggest that should be possible. Having to send paper + postal orders with registered post to pay this is a major pita.

  • Has anyone successfully managed to "code" their non-PAYE income against tax credits? For 2016, am I better off doing this, in order to avoid going the self-assessment route or is that too late now? (First RTSO payment would be due in a couple of months - could I switch from self-assessment back to PAYE?).
    What would need to be done at the end of the year? (And also - to sign up for this option - is it just a matter of contacting the local revenue office / CG ?)

  • Does the 5k threshold apply, in my case, if RTSO gain + CGT gain + Dividends gross amounts start exceeding 5k in a year? Does that automatically trigger self-assessment?

  • (Unrelated) If gains from CGT disposals are under the 1.3k threshold (or whatever it is these days) and thus they don't attract any tax liability - is there still a need to submit form CG1 to Revenue?

Any help is much appreciated!
 
My questions:
  • For 2015 - given that I submitted the RTSO forms and the payments - am I now considered a chargeable person and now need to submit Form11? (Even though my total non-PAYE income is under the threshold of 5k?). Answer: Yes, exercise of options makes you a chargeable person of itself.

  • If that's the case: does registering for self-assessment and submitting Form11 means that I now need to use ROS instead of PAYE Anytime for submitting additional US dividends received etc? It seems that using PAYE Anytime is much easier to use than ROS. Answer: yes I think so, you may be a mandatory ROS filer (this is expression so if you check this out)

  • Can I pay RTSO online through an electronic bank transfer? My queries to the Collector General in the PAYE Anytime emailing system have been left unanswered there, even though IT72 seems to suggest that should be possible. Having to send paper + postal orders with registered post to pay this is a major pita. Answer: Collector General and tax office have different functions. Call the Collector General on telephone LoCall 1890 20 30 70.

  • Has anyone successfully managed to "code" their non-PAYE income against tax credits? For 2016, am I better off doing this, in order to avoid going the self-assessment route or is that too late now? (First RTSO payment would be due in a couple of months - could I switch from self-assessment back to PAYE?).
    What would need to be done at the end of the year? (And also - to sign up for this option - is it just a matter of contacting the local revenue office / CG ?) Answer: talk to your own tax office. This will be unlikely if they insist you you filing a form 11. RTSO is the way to pay tax for stock options.

  • Does the 5k threshold apply, in my case, if RTSO gain + CGT gain + Dividends gross amounts start exceeding 5k in a year? Does that automatically trigger self-assessment? Answer: You will be in self assessment most likely. See above. CGT does not get included in €5K limit

  • (Unrelated) If gains from CGT disposals are under the 1.3k threshold (or whatever it is these days) and thus they don't attract any tax liability - is there still a need to submit form CG1 to Revenue? Answer: in theory the answer is most likely yes. However if you are filing a Form 11 (or a Form 12 if you can get away with it) you will need to complete the CGT section.
 
For now I would fill in a Form 12 and let revenue advise whether you need to 'upgrade' to a Form 11.
 
I would not do as elcato suggests. The problem with doing this is that you would pay tax on Form RTSO1 but it wouldn't be matched with a tax return. For individuals exercising share options the tax needs to be paid on through the RTSO system and a tax return is required. A form 12 doesn't have any boxes for share options to be included. Thus in the Revenue system you would have a payment but no matching tax return to square it off. Sooner or later a demand could issue for a Form 11 and you could be facing a surcharge. You may be able to get out of it through pointing out you filed a Form 12 but this could take a while if it is possible. I'd take the easy route.
 
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