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Self-assessment threshold increased to £150,000

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Self-assessment threshold increased to £150,000

In the May Agent Update, HMRC announced that starting from the 2023/24 tax year, the self-assessment threshold for taxpayers taxed through PAYE will increase from £100,000 to £150,000. For the 2022/23 tax year, the threshold remains at £100,000, and taxpayers will receive the usual notice to file a tax return.

However, HMRC stated that once these taxpayers submit their 2022/23 tax return, they will be assessed against the new £150,000 threshold. If their 2022/23 tax return shows income between £100,000 and £150,000 taxed through PAYE, and they don’t meet any other criteria for submitting a self-assessment return, they will receive a self-assessment (SA251) exit letter.

Nonetheless, these taxpayers will still be required to submit a tax return for 2023/24 if they have any untaxed income, are partners in a business partnership, need to pay the High Income Child Benefit Charge (HICBC), or are self-employed with a gross income over £1,000.

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