31 May 2023
Tax assessment news: announced in the May agent update, the income threshold where individuals are required to submit a self assessment form will be increased from £100,000 to £150,000 for the 2023/24 tax year.
This will not affect the self assessment threshold for 2022/23 which will remain at £100,000.
Self Assessment Criteria for 2023/24
For 2023/24, where income tax paid via PAYE is below £150,000, a self assessment form will still be required if they meet the following criteria:
- receipt of any untaxed income
- partner in a business partnership
- liability to the High Income Child Benefit Charge
- self-employed individual and with gross income of over £1,000.
Income Tax Threshold Advice for Employers
We would urge employers to review processes for informing employees where they may exceed the threshold and require a submission. We would also like to highlight the importance of timely updating of records where an individual’s personal allowance is reduced after exceeding £100,000 per year. This is potentially an area where self assessment submissions highlighted where errors have occurred in PAYE operation and allowed HM Revenue and Customs (HMRC) to rectify the situation.
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