When to advise HMRC of estimated income

BigBertieB

I’m an additional rate tax payer on a K tax code (K72). I’m due a bonus (>100k gross) in July which is paid in Shares therefore I’m unable to sacrifice to my pension pot.

I’m planning to crystallise these shares when they are exercisable in July (to avoid any CGT) however I’m unsure if I’m better to advise HMRC of my estimated annual income now (ie at the beginning of the tax year) or if I should wait until July when I receive the bonus. Or does it make no difference?

I want to avoid paying increased tax and having a reduced net pay before July (when I receive the bonus).

As an aside if anyone has any ideas on how to reduce the tax payable on the bonus I’d be interested to hear that. I cannot salary sacrifice so I don’t see any way to avoid paying IT on it.

Thanks in advance

DRS1

Usually all the tax planning is done when those sort of arrangements are set up not when they pay out.

Are there perhaps restrictions on the shares which affects their value?  Presumably not if you can just sell them in July..

BigBertieB

They were awarded five years ago (not taxed at time of grant). July is when they become vested so at whatever point after 1st July I decide to exercise them that’s when I would pay IT on them.
As I understand it any gain between when they vest and when I exercise them would be subject to CGT, hence why I’m keen to exercise them straight away to avoid this.