Changes to the self-assessment threshold

From the start of the current 2023-24 tax year, the threshold for self-assessment taxpayers taxed only through PAYE increased from £100,000 to £150,000. However, the self-assessment for 2022-23 tax returns remains at £100,000.  

This means that taxpayers who submit a self-assessment tax return for 2022-23 showing income between £100,000 and £150,000 taxed through PAYE and do not meet any of the other criteria for submitting a self-assessment return will be sent an exit letter by HMRC.

This will remove the requirement for an annual self-assessment tax return to be submitted by qualifying taxpayers from 2023-24.

For the 2023-24 tax year onward taxpayers will still need to submit a self-assessment tax return if their income taxed through PAYE is below £150,000 but they meet one of the other criteria for submitting a self-assessment return, such as:

 receipt of any untaxed income

 partner in a business partnership

 liability to the High Income Child Benefit Charge

 self-employed individual and with gross income of over £1,000

Taxpayers that need to complete a self-assessment return for the first time should inform HMRC as soon as possible. The latest date that HMRC should be notified is by 5 October following the end of the tax year for which a self-assessment return needs to be filed.

If you are required to submit a self-assessment return for 2022-23, you should ensure that you file your tax return electronically and pay any tax due by 31 January 2024.

HMRC has an online tool available at www.gov.uk/check-if-you-need-tax-return/ that can help taxpayers check if they are required to submit a self-assessment return.