Self-Assessment Criteria Adjusted to £150,000
Not long ago, we told you that somebody – who was employed and PAYE (pay as you earn) – had contacted us, having received an unexpected letter from HMRC asking them to submit a tax return. They thought they were covered by PAYE and were confused. However, a quick chat revealed that they were now earning in excess of £100,000, so we were able to explain that they were required to complete a tax return.
This situation has now changed, as HMRC has announced that the criteria has been adjusted and, for the tax year 2023 to 2024 onwards, the self-assessment threshold for taxpayers taxed through PAYE only is rising to £150,000.
However, you might still need to submit a tax return even if your income taxed through PAYE is below £150,000. For example, you might be in receipt of some untaxed income from a rental property, dividends or an overseas source. In addition, you might have some business interests on top of your main job, such as being the partner in a business partnership or running your own business as a self-employed individual, with a gross income of more than £1,000.
Even if you now earn between £100,000 and £150,000 purely through your job, it’s still worth a chat with our team at Lewis & Co, primarily to check that your tax codes are correct and you’re not paying excess tax. Do get in touch on 01892 513515.