Answering 'expected adjusted net income' questions, when bonus value depends on a Share Price??

Please could a HMRC Admin respond to the below: Relating to the eligibility questions for Tax Free Childcare, i need to answer the question of whether my 'expected adjusted net income' for the year will end up as under £100k At the end of the last tax year in March, i received a bonus payment in company shares. The award was defined as being a set number of shares so the specific value of this was only determined on the day. It's not unfeasible that i might receive another share-based bonus at the very end of this tax year (based on future company performance until then). In this instance, how should i be factoring this into my 'expected' earnings? Obviously if i had any 'valid' expectations on what the share price would be in a years time, id be able to make a lot of money doing something else! -If bonuses themselves are only potential/discretionary (ie not certain) should they be included in 'expected earnings' (irrespective of being in cash or shares)? -If the bonus would be in shares, how should I assess the value of these in advance of the issue date given it is unknown what the value will be in march? The share price itself is obviously fairly volatile in value, with a spectrum of potential outcomes which include a negligible value. Do i need to use the share price at the date of the reconfirmation questions to factor into this? Thanks,

Hello, do you know how long it might take to get a response on this one? I submitted this question 2 days ago. Thanks

Hi A16XJD,
If your bonus is not certain, this would not need to be included in expected earnings.
For more advice, contact our Child Benefit helpline here:
Child Benefit: general enquiries
Thank you. 

 

Good evening, I am trying to work out my adjusted net income for the child benefit high income charge. I have a basic salary with shift pay and overtime. I receive annual profit share from my company based on the companies performance, this is not guaranteed every year. Do I declare this as part of my adjusted net income based on it not being guaranteed?

Hi Simon,
Details of what to include cam be found at:-  Personal Allowances: adjusted net income
Thank you.

Hi I have a similar enquiry to A16XJD. At the company I work at we have an annual salary and then typically an annual bonus awarded based on company performance. In addition we have Long Term Incentive Scheme (LTIP) that grants a set number of shares that will vest in three year time based on company performance. It is therefore uncertain whether we will be awarded either the annual bonus or the LTIP. Do either of these need to be taken into account for my adjusted net income? If I was to go over the £100k limit as a result of the bonus and LTIP - what happens? Are you then not entitled to claim tax free child care for the the next tax year? or as it was unexpected it does not matter? Many thanks

Hi Jamie Pearce,
Please have a look:
Personal Allowances: adjusted net income
For guidance on how to work out your adjusted net income.
Any vested shares are classed as income and are taxable.
Usually, vested shares are included in your pay by your employer and are part of your taxable earning declared on your P60.
Thank you.