Good news! The threshold for submitting a self assessment tax return if you earn PAYE income only has increased. From this tax year (2023/24) the threshold increases to £100,000 from £150,000.
This change is welcomed by those earning over £100,000 via PAYE only. It removes the need for those taxpayers to complete and submit a self assessment tax return. (See below for the exceptions involved.)
Are you affected by this change? More good news … you don’t need to do anything to reflect this development. The tax year we are currently working on for self assessment submissions (2022/23) maintains the £100,000 threshold. If your income taxed through PAYE for 2022/23 is between £100,000 and £150,000 you will automatically receive an exit letter from HMRC.
New Threshold Exceptions
From the 2023/24 tax year, you will still need to submit a self assessment tax return if your PAYE income is below £150,000. This will occur if you are:
- in receipt of any untaxed income,
- a partner in a business partnership,
- liable to the High Income Child Benefit Charge, or
- a self-employed individual and with gross income of over £1,000.
Minimising Tax Payments
HMRC asks high earners for a tax return as their finances are often more complex and their tax-free personal allowance may be affected. Each individual’s ‘adjusted net income’ dictates how much tax they should pay.
Most people dread calculating their tax bill … but here’s the best news … we love number crunching and tax is our superpower! If you are a high-earning individual affected by the change in self assessment threshold, let’s talk. We thrive on helping our clients to save money whilst being fully compliant and meeting HMRC deadlines. Let’s reduce your tax payments!
