Tax return threshold to rise in 2023/24
HMRC has announced a change in the threshold at which taxpayers need to complete a tax return. What's the new threshold, and what do you need to do if affected?
Currently, those with income exceeding £100,000 must submit a self-assessment tax return each year. This means that employees with this level of income, who pay all their taxes via PAYE, have to complete a tax return simply to give HMRC the same information it's already been given from payroll submissions and Form P60. From 2023/24, the threshold is increasing to £150,000; the reason for which is unclear as £150,000 does not correspond to any other income tax threshold, following the additional rate now starting at £125,140. However, it’s welcome news for those earning between £100,000 and £150,000.
The increase applies to the current tax year, so the last tax return that affected taxpayers need to file is the 2022/23 tax return which is due by 31 January 2024. HMRC will write to those who have no other reason to submit a tax return, e.g. to report untaxed income or a high income child benefit charge, to confirm that they have been removed from self-assessment.
Related Topics
-
Increase the IHT-free part of your estate by 50%
Your father died leaving his entire estate to your mother who later remarried. You’ll inherit some or all of her estate depending on whether she dies before her husband. What steps can be taken to reduce the inheritance tax (IHT) on the estate?
-
Class 2 NI problems to continue beyond summer
The problems with incorrectly charged Class 2 NI have been widely reported. HMRC has just released an update, and it’s bad news for affected individuals. What’s the full story?
-
How much will you save with reduced scale charges?
HMRC has reduced the VAT fuel scale charge by nearly 6% for company-provided cars. When does the new reduced rate take effect and how do you make the calculations?