Unsold shares have pushed me over 100k

As part of our incentive plan, the company provides annual shares which vest every 3 years. When the shares vested in July 2024 this amount was added to my payslip for the value of the shares at that time (34k). This amount has pushed my total taxable income over 100k according to my P60 and payslips, however I never actually sold the shares. The company is now going through some issues and those same shares, if I sold them today, would only be worth 9k. My question is what the right thing to do is here? My self assessment calculation shows I underpaid tax by 4k and now owe HMRC, but I've underpaid on money I never actually received? And if I remove the 34K from my income I fall back below the 100K mark. Please help.

Hi,

When the shares vest they are still taxable income and form part of your P60. If you then sell them then it is possible that Capital Gains Tax is due. What your employer has done is correct and as your income is over £100000, you will not be due full personal allowances and hence the underpayment.

Thank you.