Self-assessment threshold increases to £150,000
HMRC has revealed that the self-assessment threshold for PAYE taxpayers will increase from £100,000 to £150,000 for the 2023/24 tax year.
Currently, individuals taxed through PAYE only are legally required to file a self-assessment tax return if they make more than £100,000 annually. The threshold change means that fewer taxpayers will need to submit their returns for this tax year, potentially reducing their administrative burden.
In its latest agent update, HMRC said that affected taxpayers should not 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 need to submit a tax return by the usual deadline on 31 January 2024.
However, those taxpayers will receive a self-assessment exit letter from HMRC after submitting their return — 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 interest on savings or rental payments, may also need to submit a return.
Talk to us about your self-assessment tax returns.