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ARTICLE · 02 JULY 2012

Post P45 Share Based Earnings

Addleshaw Goddard
Addleshaw Goddard
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Addleshaw Goddard

Addleshaw Goddard

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Since 6 April 2011 employers have been required to apply an OT code on all payments (other than share based payments) made to an individual after the P45 has been issued.

United KingdomTax
Michael Carter
Michael Carter
Zoe Fuller
Zoe Fuller
Nicky Griffin
Nicky Griffin
Ed Groves
Ed Groves

Since 6 April 2011 employers have been required to apply an OT code on all payments (other than share based payments) made to an individual after the P45 has been issued. The OT code requires PAYE to be operated on a non-cumulative basis at 20, 40 or 50% (as applicable) without applying any personal allowance. From 6 April 2012, the OT code will apply to all payments including share based payments. To help employers to deal with the practical issues of applying an OT code to share based payments, HMRC has published a set of frequently asked questions (FAQs). Unfortunately, the link to the relevant section of HMRC's website is defective so we can not supply a copy.

However, the FAQs confirm that, in respect of payments made after the P45 has been issued:

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