HMRC is sending letters to anyone earning between £100,000 and £150,000 warning them about significant changes to the rules on tax returns. People earning between £100,000 and £150,000 will no longer automatically have to file a self-assessment return if they are paid through PAYE and have no other income after the employment income threshold was raised for the 2023/24 tax year.
HMRC has sent letters to affected taxpayers ‘to confirm that they do not need to complete a tax return if they submitted a 2022-23 tax return showing income of between £100,000 and £150,000 that is taxed through PAYE, and they do not meet any of the other criteria for being in self-assessment’.
For the 2023-24 tax year, taxpayers 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, such as:
• they receive any untaxed income over £2,500;
• they are a partner in a business partnership;
• pay the high income child benefit charge (HICBC);
• are self-employed with gross business income over £1,000.
From the tax year 2024-25 onwards, the income threshold to complete a tax return for PAYE-only taxpayers will be removed completely.
If you have any questions on how this topic affects you, get in touch on 01902 711370 or email enquiries@uklandlordtax.co.uk.