From the tax year 2023 to 2024 onwards, the self assessment threshold for individuals taxed through PAYE only, will change from £100,000 to £150,000.
The affected individuals do not need to do anything for the tax year 2022 to 2023 as the tax return threshold remains at £100,000.
However, they will receive an exit letter if they submit a 2022 to 2023 return showing income between £100,00 and £150,000 taxed through PAYE and they do not meet any other criteria.
For the 2023 to 2024 tax year onwards, individuals will still need to submit a 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 tax 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 over £1,000
If you would like to discuss if this self assessment threshold change affects you, please contact your usual NRB advisor or our tax team.
