Tax Advice - Bonus and Share Scheme

valhalla80

I'm looking for some advice and/or recommendations for someone to speak to formally to get some advice for how to proceed with this if anyone has any recommendations?

Quick summary, i'm a higher earner in FTE with a single income stream from my job which pays a salary + bonus + for 2 years only a share reward plan.

This share reward plan paid out for the first time this last financial year in August and as a result HMRC are saying I have paid approx 2k less tax than I should and will be collecting this next tax year. I paid tax as part of PAYE on the salary and bonus and share reward when that was cashed in but appreciate the calculation may not have been correct via PAYE.

This next financial year HMRC are estimating my income to be double as they're anticipating a cashing in of the share scheme again in addition to salary and bonus. I may not cash in the shares this next financial year.

Should I update my estimated income on the HMRC portal to be my salary + bonus expected amount and will that still take off the missing tax I need to pay still from this year? Or is it better to leave it even if I dont cash in the share reward plan and try and claim back if I dont cash in?

To me this is quite complex so i'm happy to speak to a professional if someone can provide any recommendations?

Thanks in advance. 

sheramber

Why would your income next year affect the tax under paid this year? 

You have underpaid £2k  for 24/25 and that is due to be paid

. You can pay it through your tax code for next year or you could pay the full amount direct. 

Only paying it direct will remove it from your code number for next year - 25/26

valhalla80

sheramber said:

Why would your income next year affect the tax under paid this year? 

You have underpaid £2k  for 24/25 and that is due to be paid

. You can pay it through your tax code for next year or you could pay the full amount direct. 

Only paying it direct will remove it from your code number for next year - 25/26

Fair point, i'm far from knowledgeable in this area as is no doubt evident. I may pay the full amount to keep it simple. So taking that out of the question would it be correct to update my expected income to the pre share cash in value based upon the fact I may not cash them in.