It has been revealed by HMRC that, for the 2023/24 tax year, the self-assessment threshold for PAYE taxpayers will increase.
At present, the threshold stands at £100,000 – individuals taxed through PAYE only are legally required to file a self-assessment tax return if their annual earnings exceed £100,000.
HMRC has announced that, for the 2023/24 tax year, this threshold will rise to £150,000, which will mean that fewer taxpayers will need to submit returns, potentially reducing their administrative burden.
However, in a recent update, HMRC reminded affected taxpayers not to take action yet, as the threshold remains at £100,000 for the 2022/23 tax year.
Anyone who makes between £100,000 and £150,000 during this period will still be required to submit a tax return by the usual deadline on 31 January 2024.
Once they have submitted their return, those taxpayers earning between £100,000 and £150,000 will receive an exit letter from HMRC, so long as they do not meet any of the other submission criteria.
Taxpayers in business partnerships and self-employed people who earn over £1,000 a year must continue filing their annual returns after the threshold change comes into effect.
Meanwhile, individuals who receive any untaxed income, such as inheritance, interest on savings or rental payments, may also need to submit a return.
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If you have any questions about how this threshold changes may affect you, please get in touch.