From tax year 2023 to 2024 onwards, the Self-Assessment threshold for HMRC customers taxed through PAYE only, has changed from £100,000 to £150,000.
Affected customers do not need to do anything now as the Self-Assessment threshold for 2022 to 2023 tax returns remains at £100,000. They will receive a Self-Assessment exit letter if they submit a 2022 to 2023 return showing income between £100,000 and £150,000 taxed through PAYE, and they do not meet any of the other criteria for submitting a Self-Assessment return.
For the 2023 to 2024 tax year onwards, customers will still need to submit a tax return if their income taxed through PAYE is below £150,000 but they meet one of the other criteria for submitting a Self-Assessment return, such as:
- receipt of any untaxed income
- partner in a business partnership
- liability to the High-Income Child Benefit Charge
The full criteria are available here https://www.gov.uk/check-if-you-need-tax-return
However, even if a tax return is not required, HMRC still need to be told if there is income over £2,000 from dividends, or between £1,000 and £2,5000 of other untaxed income such as commission or letting property.
HMRC have historically removed some taxpayers from self-assessment incorrectly or persisted in requesting tax returns even though no longer necessary! We will be “keeping an eye” on the position for you and notifying HMRC if we find anomalies.
