Self Assessment threshold rises to £150K from 2023/24 Tax Year

Self Assessment threshold rises to £150K from 2023/24 Tax Year

HMRC has confirmed that with effect from the tax year 2023 to 2024, the self-assessment threshold for taxpayers taxed through PAYE only, will change from £100,000 to £150,000.

Any taxpayers that are affected do not need to do anything now as the self-assessment threshold for 2022 to 2023 tax returns remains at £100,000. 

When the 2022-23 tax return has been submitted and shows an income of between £100,000 and £150,000 taxed through PAYE and they meet all of the criteria, they will receive a self-assessment exit letter, meaning they will not need to submit a self-assessment for 2023/24.

For the 2023-24 tax year onward taxpayers 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 return, for example:

• 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.

If you are unsure, please get in touch with us and we will be happy to assist to ensure you remain compliant and don’t receive unnecessary penalties.