The below is a simple calculator created by ESDG Accountancy to allow tech employees to estimate the income tax and national insurance tax liability on vested RSUs. This result can help you understand your remuneration package from your employer and may aid in negotiations when considering receiving RSU awards in lieu of salary.
The income tax on RSU’s is in most instances taxed via your payslip, meaning the tax on vesting is automatically calculated and withheld by your employer. Importantly, RSU’s are taxed as your marginal rate of tax and can be subject to national insurance and student loan deductions – this means the effective tax rate can be in excess of 60%!
This calculator considers income tax rates in the UK as at August 2024 for the 2024/25 tax year.
Our RSU tax guide explains how vested RSU’s and disposals of RSU’s are taxed.
If you require a personal tax return or advice on your vested RSU’s please get in touch via our contact page or the below contact form.