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Finance Article - April/May 24

Your Questions Answered by TaxAssist Accountants

Is the threshold for filing a self-assessment tax return changing?

I have heard that HMRC will be changing the threshold for taxpayers who pay tax through PAYE to complete a self-assessment tax return. Could you please confirm what the new threshold is and when it will come into effect?

Answer

For 2023/24 you must complete a tax return if any of the following apply: 

  • You received self-employment income exceeding £1,000 
  • You are a partner in a partnership 
  • Your total taxable income exceeds £150,000 
  • You have to pay the high income child benefit charge 

Previously, and for your 2022/23 tax return, you would have needed to complete a tax return if your total taxable income exceeded £100,000. 

Those affected will not need to do anything, you should receive a self-assessment exit letter if you file a 2022-23 tax return showing income between £100,000 and £150,000 taxed through PAYE, and don’t meet any of the other criteria for submitting a self-assessment return.  

Furthermore, for the 2024/25 tax year, employees with only PAYE income will not need to complete a tax return, regardless of the amount of income. 

You can check whether you need to submit a 2023/24 tax return using the HMRC checking tool at www.gov.uk/check-if-you-need-tax-return.

Information supplied by Cheryl Hopkins, Chartered Certified Accountant, TaxAssist Accountants. Advice shared in this article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayers’ circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take, action, as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.