Revolut Faces Legal Battle Over Employee Stock Tax Bills

A group of former Revolut employees is taking legal action against the fintech company. They claim they face unexpected and large tax bills on company shares they were awarded. The dispute centers on the company's share-option plan. Employees understood these shares would be taxed as Capital Gains when sold. This typically carries a lower tax rate. Instead, UK tax authorities have classified the awards as "employment income." This means they are subject to much higher Income Tax and National Insurance contributions. The former staff must now pay this tax themselves. The employees argue Revolut did not make this risk clear. Their law firm states the tax bills are significant and create serious financial hardship. Revolut says it communicated the potential tax treatment to participants. The company states it is supporting affected individuals where possible. The case highlights the complex tax risks of employee share schemes, especially at fast-growing private companies.