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.
"However, beginning with the 2023/24 tax year, this threshold will be raised to £150,000!"
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.
"This ensures that the tax obligations are met while minimizing potential confusion!"
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.
Until next time ...
ROGER EDDOWES Business Godparent
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If anything I've written in this blog post resonates with you and you'd like to discover more about self-assessment thresholds, it may be a great idea to call me on 01908 774320 and let's see how I can help.
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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.
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