{"id":17349,"date":"2022-05-10T15:44:05","date_gmt":"2022-05-10T14:44:05","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=17349"},"modified":"2025-02-11T13:16:43","modified_gmt":"2025-02-11T13:16:43","slug":"ultimate-tax-guide-google-employees","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/high-earner-tax-returns\/ultimate-tax-guide-google-employees\/","title":{"rendered":"The ultimate tax guide for Google employees"},"content":{"rendered":"\n<p>The average take home pay for Google employees was a whopping \u00a3234,000 in 2019. As a Google employee, there are a few things to consider when it comes to paying taxes. Usually, your employer pays your taxes on your behalf through <a href=\"https:\/\/taxfix.com\/en-uk\/the-tax-basics\/should-i-be-paying-paye-tax\/\">PAYE<\/a> and you don\u2019t have to worry about it at all. <\/p>\n\n\n\n<p>However, you\u2019re also more likely to be in a position where you need to file a <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/self-assessment\/\">Self Assessment<\/a> tax return as well.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why do Google employees need to file a tax return?<\/strong><\/h2>\n\n\n\n<p>It depends on several factors. Firstly, many of you fall into the high earners category. High earners in the UK are considered anyone who makes \u00a3100k+ each year. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-container\"><iframe loading=\"lazy\" title=\"Tax in 10(ish) seconds - what happens when you earn over \u00a3100k?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/w-GPwMmk_Xk?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p>Another factor to take into account is that if you have any investments or assets. Depending on whether you exercise them or how much you make, you\u2019ll may need to declare the profit to <a href=\"https:\/\/www.gov.uk\/log-in-file-self-assessment-tax-return\" target=\"_blank\" rel=\"noreferrer noopener\">HMRC<\/a>. You may also owe tax on them.&nbsp;<\/p>\n\n\n\n<p>You will need to file a Self Assessment tax return if you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Are <a href=\"https:\/\/taxfix.com\/en-uk\/self-employed-newbie\/\">self-employed<\/a> and earned more than \u00a31,000<\/li>\n\n\n\n<li>Earn rental income over \u00a31,000 (or \u00a37,500 if you rent a room in your house)<\/li>\n\n\n\n<li>Made over \u00a33,000 in <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/capital-gain\/\">capital gains<\/a> profit in one tax year<\/li>\n\n\n\n<li>Earned more than \u00a310,000 from savings interest \u2013 not within a cash ISA<\/li>\n\n\n\n<li>Received more than \u00a3500 from dividends \u2013 not from a stocks &amp; shares ISA<\/li>\n\n\n\n<li>Earning foreign income<\/li>\n\n\n\n<li>Have any other sort of untaxed income more than \u00a31,000<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Adjusted Net Income<\/strong><\/h2>\n\n\n\n<p>One of the main reasons a Google employee would need to file is so that HMRC can check that you\u2019re paying the right amount of tax &#8211; not more and not less. Your <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/adjusted-net-income\/\">Adjusted Net Income<\/a> is your total taxable income, like your salary, rental income, etc. Tax reliefs like losses, pension contributions or donations to charities aren\u2019t included. This does, however, include your <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/personal-allowance\/\">Personal Allowance<\/a> of \u00a312,570.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-neutral m-align-left\">\n    <div class=\"b-block-body\">\n        <p><span style=\"font-weight: 400;\">The <\/span><b>income tax<\/b><span style=\"font-weight: 400;\"> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Income<\/strong><\/td>\n<td><strong>Tax rate<\/strong><\/td>\n<td><strong>Tax band<\/strong><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Up to \u00a312,570<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Personal allowance<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a312,571 to \u00a350,270<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Basic rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a350,271 to \u00a3125,140<\/span><\/td>\n<td><span style=\"font-weight: 400;\">40%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Higher rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">over \u00a3125,141<\/span><\/td>\n<td><span style=\"font-weight: 400;\">45%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Additional rate<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n\n<p>If you earn over \u00a3100k a year, your Personal Allowance is reduced by \u00a31 for every \u00a32 you owe over \u00a3100k. When you start earning \u00a3125,140, your Personal Allowance goes to \u00a30. This means that the tax rate for the income between \u00a3100k-\u00a3125,140 is 60%.&nbsp;<\/p>\n\n\n\n<p>Confused? We get it, so check out <a href=\"https:\/\/taxfix.com\/en-uk\/high-earner-tax-returns\/what-are-the-tax-implications-of-earning-over-100k\/\">this guide<\/a> that explains it all and more.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Deadlines<\/strong><\/h2>\n\n\n\n<p>There are filing deadlines, registration deadlines and payment deadlines. And guess what? You\u2019ve got to know them all! Only kidding, you don\u2019t need to memorise anything, we do all that for you\ud83d\ude09<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-neutral m-align-left\">\n    <div class=\"b-block-body\">\n        <p><span style=\"font-weight: 400;\">Key dates in the current <\/span><b>2025\/26 tax year \ud83d\udc47<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Deadline<\/b><\/td>\n<td><b>Date<\/b><\/td>\n<td><b>Year<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax year starts<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6th April<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2025<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax year ends<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5th April<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2026<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Register for self assessment<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5th October<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2026<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Pay tax bill by PAYE salary<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30th December<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2026<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Self assessment deadline<\/span><\/td>\n<td><span style=\"font-weight: 400;\">31st January<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2027<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How you\u2019re paid at Google<\/strong><\/h2>\n\n\n\n<p>At Google, most employees receive Restricted Stock Options (RSUs) on top of their yearly salary and other benefits or compensation. An RSU is another form of equity compensation that used to compensate employees and is quite common nowadays, especially in big tech companies.\ud83d\udcf1<\/p>\n\n\n\n<p>As big tech grows, there\u2019s been a shift from stock options, which are more common in startups, to RSUs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Are RSUs taxed as income?<\/strong><\/h2>\n\n\n\n<p>RSUs are a promise to give employees shares at a certain event. Here are the two more important dates to take note of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Grant date: when the shares are promised to you<\/li>\n\n\n\n<li>Vest date: when they\u2019re available and can be sold&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Let\u2019s say you\u2019re granted 100 RSUs on starting your job. 20% vests every year over a five year total which means you can sell and profit from 20 (20% of the 100 total) RSUs every year. The value will be added to your salary if you sell straight away.&nbsp;<\/p>\n\n\n\n<p>However, if you choose to hold onto them, your tax situation might become less favourable because of two reasons. \ud83d\udc47<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-columns-mini m-align-center\">\n    <div class=\"b-columns-mini__container\">\n\n        \n        \n        <div class=\"b-columns-mini__item m-yellow\">\n                                    \n            <div class=\"b-columns-mini__item-content\">\n                <div class=\"b-block-body\">\n                    <p style=\"text-align: center;\">You\u2019re already paying Income Tax and NI \u2192 your RSU earnings can push you into the higher tax band<\/p>\n\n                <\/div>\n            <\/div>\n        <\/div>\n\n        \n        \n        <div class=\"b-columns-mini__item m-purple\">\n                                    \n            <div class=\"b-columns-mini__item-content\">\n                <div class=\"b-block-body\">\n                    <p style=\"text-align: center;\">You\u2019ll likely owe Capital Gains Tax and will definitely have to file a tax return<\/p>\n\n                <\/div>\n            <\/div>\n        <\/div>\n\n        \n        \n    <\/div>\n<\/div> <!-- .b-columns-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<p>So, each time the RSUs vest, you\u2019ll have to pay both Income Tax and NIC on them. Income Tax is paid regardless of whether you keep or sell the shares. Mostly, this is done through PAYE via your employer, so you don\u2019t need to do anything.&nbsp;<\/p>\n\n\n\n<p>If you sell for a profit, you may be subject to Capital Gains Tax as well.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-neutral m-align-left\">\n    <div class=\"b-block-body\">\n        <p><b>Capital gains tax<\/b><span style=\"font-weight: 400;\"> rates in the 2025\/26 tax year. It\u2019s paid on profits over the \u00a33,000 CGT allowance \ud83d\udc47<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Type of asset<\/b><\/td>\n<td><b>Basic rate<\/b><\/td>\n<td><b>Higher rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Shares<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Residential property<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">24%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Bitcoin\/cryptocurrency<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Other<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What if I need help with my tax situation?<\/strong><\/h2>\n\n\n\n<p>If you need more help, get <a href=\"https:\/\/taxfix.com\/en-uk\/tax-advice\/\">advice from an accredited accountant<\/a>. They\u2019ll answer any questions you have and even give you a written follow-up!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The average take home pay for Google employees was a whopping \u00a3234,000 in 2019. As a Google employee, there are a few things to consider when it comes to paying taxes. Usually, your employer pays your taxes on your behalf through PAYE and you don\u2019t have to worry about it at all. However, you\u2019re also [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[463],"tags":[70,102,348,418],"class_list":["post-17349","post","type-post","status-publish","format-standard","hentry","category-high-earner-tax-returns","tag-capital-gains-tax","tag-hmrc","tag-income-tax","tag-invest"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The ultimate tax guide for Google employees &#8211; Taxfix<\/title>\n<meta name=\"description\" content=\"Google employees might have a tax situation that&#039;s a little different depending on how much you earn and what compensation you receive.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxfix.com\/en-uk\/high-earner-tax-returns\/ultimate-tax-guide-google-employees\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The ultimate tax guide for Google employees &#8211; 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