Self-Assessment threshold change

From tax year 2023 to 2024 onwards, the Self-Assessment threshold for taxpayers taxed through PAYE only will change from £100,000 to £150,000.   

Affected individuals do not need to do anything now as the Self-Assessment threshold for 2022 to 2023 tax returns remains at £100,000.  They will receive a Self-Assessment exit letter if they submit a 2022 to 2023 return showing income between £100,000 and £150,000 taxed through PAYE and they do not meet any of the other criteria for submitting a Self-Assessment return.

For the 2023 to 2024 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, such as:

• receipt of any untaxed income,
• partner in a business partnership,
• liability to the High Income Child Benefit Charge, or
• self-employed individual and with gross income of over £1,000.

See: Issue 108 of Agent Update - GOV.UK (www.gov.uk)