Tax advice - mistake already done

ali_chacha3

Hi,
Recently I moved to contracting and I am not taking salary remaining months in year 2017-2018. I earned 41.8K in my previous employment as an permanent employee. I had shares options from that company and company become public and I sold all my shares without thinking of my tax implication what I shouldn’t have done. I should have waited for next year April. Company has deducted tax on that income at 40% rate as it’s crossing 45K range and given my money.
Do I have any option now to show this income in 2018-2019 as there will be no salary in 2018-2019 I could pay tax on 20% rate instead of 40%. One thing my employer has already deducted the Tax so it must be in HMRC now.

Please advice.
Thanks
Ali

Linton

No, you cant do something next year which reduces your tax retrospectively.

However there may be some good news. Is the £41.8K your total earnings in the 2017/2018 tax year or is it your annual salary? The point is that tax is calculated on an annual basis but deducted on a monthly basis. So if your annual salary is £41.8K you would have been fairly close to the higher rate tax band each month whilst working and so had higher rate tax deducted when you sold your options. However over the whole year you could be well below the higher rate band and so due a tax refund.

If you are moving to contracting won't you get paid?