Self-assessment threshold for PAYE only income rises to £150,000
HMRC has confirmed that for 2023/24 tax year onwards that those whose only source of income is from PAYE and the total gross amount received in the year is below £150,000 will no longer be required to file a return. Previously everyone earning over £100,000 was required to complete a return each year.
Those affected do not need to do anything now as the threshold for the tax year 2022/23 remains at £100,000.
If your income for 2022/23 was between £100,000 and £150,000 and you do not fulfil any other criteria for self-assessment then you will receive a self-assessment exit letter after submitting your 2022/23 Tax Return.
Although this may seem like great news we would caution that those earning £100,000 – £150,000 are some of the most likely taxpayers to have over or underpayments of their tax. Removing the need to submit a return each year puts the control of your payments and repayments into HMRC’s hands.
You will still need to complete a tax return if your circumstances have changed and you fulfil any other criteria for self-assessment, even if you receive an exit letter.
If you think you fall into the above income bracket and are unsure about what to do then please get in touch with our tax team.