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Changes in Criteria for Self-Assessment

What you need to know ...


Posted by Roger Eddowes on 07/12/2023 @ 8:00AM

The self-assessment tax return system in the UK has been in place since 1996 and has been constantly evolving ever since. HMRC has recently been reviewing and making changes to the criteria for self-assessment ...

I believe these changes to the criteria for self-assessment will make the tax system a lot more efficient!

I believe these changes to the criteria for self-assessment will make the tax system a lot more efficient!

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One of the most significant changes announced by HMRC is the increase in the income threshold for filing a self-assessment tax return. In May 2023, HMRC announced that the threshold would be raised from £100,000 to £150,000, effective from the 2024/25 tax year.

This means that individuals with an income below £150,000 will no longer be required to file a self-assessment tax return, as long as they do not meet any of the other criteria for filing one.

"This change is aimed at reducing the burden on taxpayers and simplifying the tax system!"

In July, the government announced plans to simplify the process for taxpayers becoming liable for the high-income child benefit charge. This charge is currently paid through self-assessment, but the new plan is to allow employed taxpayers to pay it through their tax code, without the need to register for self-assessment. Further details on this will follow.

However, the Autumn Statement 2023 included another significant change to the criteria for self-assessment which is interesting considering the May 2023 announcement. It was announced that the income threshold of £150,000 would be removed altogether, effective from the 2025/26 tax year.

Although this means there is no need to do a self-assessment tax return if no other criteria are met, in reality, individuals earning over £150,000 will need to do a tax return as they will most probably have other untaxed income such as dividends.

As an accountant, I must stay updated on these changes and their implications for my clients. The increase in the income threshold and then the removal of it altogether in the following tax year will have a significant impact on the number of self-assessment tax returns I will be required to file, so it is important I communicate these changes to my clients and this blog is the perfect way to do just that.

"It is worth noting that the other criteria for
self-assessment remain unchanged!"

This includes self-employment income over £1,000, other untaxed income of £2,500 or more, claims for tax relief for employment expenses of more than £2,500, and income from savings or investments over £10,000.

HMRC has also been working on improving its digital services, which will have an impact on the self-assessment system. The single-customer account programme is expected to bring changes that will improve how income taxpayers outside self-assessment finalise their income tax liability.

I believe these changes to the criteria for self-assessment will make the tax system a lot more efficient.

Until next time ...

Business Godparent


Would you like to know more?

If anything I've written in this blog post resonates with you and you'd like to discover more about these self-assessment criteria changes, it may be a great idea to call me on 01908 774320 and let's see how I can help.

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About Roger Eddowes ...


Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.