Self assessment threshold rises to £150k
Last week, HMRC announced that for the tax year 2023 to 2024 onwards, the self assessment threshold for taxpayers taxed through PAYE only, will change from £100,000 to £150,000.
If you are an affected taxpayer, you do not need to do anything now as the self assessment threshold for 2022 to 2023 tax returns remains at £100,000.
You will receive a self assessment exit letter if you submit a 2022-23 return showing income between £100,000 and £150,000 taxed through PAYE and do not meet any of the other criteria for submitting a self assessment return.
You still might be required to complete a self assessment tax return
You might still need to submit a tax return even if your income taxed through PAYE is below £150,000.
Some examples of criteria which mean you are required to submit a self assessment return are as follows:
- You are in receipt of any untaxed income e.g. rental income, dividends etc
- You are in receipt of income from overseas sources
- You are partner in a business partnership
- You are liable to the High Income Child Benefit Charge
- You are a self-employed individual with gross income of over £1,000
Here is a link to the government website where you can check if you need to file a self assessment tax return. Check if you need to send a Self Assessment tax return.
In addition, you might choose to fill in a tax return to claim income tax reliefs on payments such as pension contributions and charity donations.
If you need our help with this or any aspect of your personal taxes get in touch with our Personal Tax Compliance team.
The information was correct at time of publishing but may now be out of date.