Changes to Self Assessment in 2023-24 – Do you still need to file a tax return?

Sep 27, 2023

HMRC has announced changes to thresholds that no longer require anyone with PAYE income over £100,000 to file a tax return, except in certain circumstances. 

As of the 2023 to 2024 tax year:

  1. Self Assessment Threshold for PAYE Only: The Self Assessment threshold for individuals taxed through PAYE (Pay As You Earn) only will increase from £100,000 to £150,000. This means that individuals with income up to £150,000 that is solely taxed through PAYE will not be required to file a Self Assessment tax return.
  2. Transition Period: For the 2022 to 2023 tax year, the Self-assessment threshold remains at £100,000. Therefore, individuals with income between £100,000 and £150,000, which is taxed through PAYE, will still need to submit a Self Assessment return for that tax year. HMRC will then send them an exit letter notifying them if they do not meet the criteria for 2023-24.
  3. Criteria for Submitting a Self Assessment Return: Even for the 2023 to 2024 tax year and onwards, individuals with income taxed through PAYE below £150,000 may still need to submit a Self Assessment tax return if they meet specific criteria, such as having:
  • Receipt of untaxed income.
  • Partnership in a business partnership.
  • Liability to the High Income Child Benefit Charge.
  • Self-employment income with gross income exceeding £1,000.

It’s important for individuals to stay informed about these changes and any other criteria that may require them to file a self-assessment tax return. You should also keep records of income and expenses to ensure accurate reporting.

For the most up-to-date and specific guidance regarding self-assessment and tax-related matters, individuals should consult with a tax professional such as the specialists at Fixed Fee Tax Return who can provide personalized advice based on their individual circumstances. Simply reach out to us and contact us for assistance.

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