Tax return threshold to rise in 2023/24
HMRC has announced a change in the threshold at which taxpayers need to complete a tax return. What's the new threshold, and what do you need to do if affected?
Currently, those with income exceeding £100,000 must submit a self-assessment tax return each year. This means that employees with this level of income, who pay all their taxes via PAYE, have to complete a tax return simply to give HMRC the same information it's already been given from payroll submissions and Form P60. From 2023/24, the threshold is increasing to £150,000; the reason for which is unclear as £150,000 does not correspond to any other income tax threshold, following the additional rate now starting at £125,140. However, it’s welcome news for those earning between £100,000 and £150,000.
The increase applies to the current tax year, so the last tax return that affected taxpayers need to file is the 2022/23 tax return which is due by 31 January 2024. HMRC will write to those who have no other reason to submit a tax return, e.g. to report untaxed income or a high income child benefit charge, to confirm that they have been removed from self-assessment.
Related Topics
-
Tribunal rejects reliance on adviser as reasonable excuse
A recent First-tier Tribunal decision has confirmed that relying on an accountant does not automatically amount to a reasonable excuse for missing a self-assessment deadline. The case highlights the limits of delegating tax responsibilities. What does this mean in practice?
-
HMRC issues new wave of offshore “nudge” letters
HMRC has issued a further round of “nudge” letters targeting individuals it believes may have undeclared offshore income or gains. The letters form part of HMRC’s ongoing use of data from international information exchange agreements. What should you do if you receive one?
-
Payroll changes for 2026/27
As the end of 2025/26 draws closer, HMRC has published a raft of updates and reminders for employers. Which changes do you need to be aware of that might impact your payroll in 2026/27?