In a significant development for taxpayers, HMRC has announced that the self-assessment threshold will change starting from the 2023/24 tax year ...
The threshold for taxpayers solely taxed through the PAYE system will see an increase from £100,000 to £150,000. Until the implementation of the new threshold, individuals who are solely taxed through the PAYE system will still be obligated to submit a self-assessment return for the 2022/23 tax year if their income exceeds £100,000.
It is important to note that taxpayers who meet any other existing self-assessment criteria will still be required to submit a return. These additional criteria include liability to the high-income child benefit charge, receipt of self-employment income over £1,000, and receipt of untaxed income of £2,500 or more.
While self-assessment criteria serve as administrative parameters employed by HMRC to determine the necessity of a tax return submission, it is essential to understand that they are not enshrined in law.
For taxpayers who have a tax liability, but do not meet any of the existing self-assessment criteria, it may be necessary to contact HMRC and arrange for the tax to be collected through the PAYE system using their normal tax code.
In an effort to simplify and modernize HMRC's Income Tax services, the operation of the self-assessment criteria is currently under review. This review presents an excellent opportunity for taxpayers to contribute their perspectives and suggestions, thereby shaping the future of income tax services in the UK.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.