Threshold for Self Assessment Increases to £150k

HMRC has provided confirmation that starting from the tax year 2023-2024, there will be a change in the self-assessment threshold for taxpayers who are solely taxed through PAYE. The threshold will increase from £100,000 to £150,000.

For the current tax year 2022-2023, affected taxpayers are not required to take any immediate action as the self-assessment threshold remains at £100,000.

However, if taxpayers submit a 2022-2023 return indicating an income between £100,000 and £150,000 that is solely taxed through PAYE and they do not fulfill any other criteria for self-assessment, they will receive a self-assessment exit letter.

Starting from the tax year 2023-2024, taxpayers will still be required to submit a tax return if their income, solely taxed through PAYE, falls below £150,000 but they fulfill any other criteria for self-assessment. These criteria include:

• Receiving untaxed income

• Being a partner in a business partnership

• Being liable for the High Income Child Benefit Charge

• Being self-employed with gross income exceeding £1,000.

Contacts

If you require assistance in relation to the above and/or would like to discuss anything further, please do not hesitate to contact info@act.london or your usual A.C.T. contact.