I am employed full-time, a high-rate taxpayer and income tax is deducted at source.
I do occasional freelance work on top of my FTE and file these on my self-assessment form.
But I need advice on what to do about a job I did that is about to pay out:
Five years ago I did a considerable amount of freelance work on a start-up app. I was not paid at the time (as the start-up wasn't making money then anyway) but signed a contract that would give me a % of equity. I continued to do occasional work for the app over the years.
The app founders are about to sell it, and realise a reasonable sum, a % of which will be paid to me.
How do I treat this on my self-assessment form? Will HMRC spread the gains over five years or treat it as a one-off sum in a single tax year?
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