Self assessment threshold rises to £150k

HMRC has confirmed that 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.

Sara White, Editor, Accountancy Daily

Affected taxpayers 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 2022-23 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 2023-24 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, 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 of over £1,000.