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Advice Needed on Managing Income Tax for FY24/25
sawbo1979
Posts: 3 Newbie
in Cutting tax
Hi All,
I am looking for some help / advice / tips on managing income with regards to income tax via PAYE.
Every year I calculate my income and sacrifice to pensions etc. to NOT tip over the £100k threshold to keep my personal allowance and avoid the 60% rate.
However, I have been issued a large number of shares that will vest over the course of 2024/25 that will more than double my total income. The problem is that with shares, you do not actually get the money until you sell, but the value of shares at vest is added to your total income on the P60. This has the potential to add approximately £8k to my tax bill, approx. £666 a month extra on income tax for money I have not actually received.
Does anyone have any experience on managing income tax on shares, as although I appreciate I am in a lucky position, an additional £666 a month on tax is not manageable. At the moment, I'm thinking that my best option is to submit an estimated income of £100k to HMRC and then sell a portion of shares to cover the tax owed after the financial year has completed.
Thanks in advance
I am looking for some help / advice / tips on managing income with regards to income tax via PAYE.
Every year I calculate my income and sacrifice to pensions etc. to NOT tip over the £100k threshold to keep my personal allowance and avoid the 60% rate.
However, I have been issued a large number of shares that will vest over the course of 2024/25 that will more than double my total income. The problem is that with shares, you do not actually get the money until you sell, but the value of shares at vest is added to your total income on the P60. This has the potential to add approximately £8k to my tax bill, approx. £666 a month extra on income tax for money I have not actually received.
Does anyone have any experience on managing income tax on shares, as although I appreciate I am in a lucky position, an additional £666 a month on tax is not manageable. At the moment, I'm thinking that my best option is to submit an estimated income of £100k to HMRC and then sell a portion of shares to cover the tax owed after the financial year has completed.
Thanks in advance
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