HMRC Raises Self Assessment Threshold to £150,000 for PAYE Taxpayers
12/06/2023

HMRC has announced a change in the self assessment threshold for taxpayers who are solely taxed through PAYE. Starting from the 2023-24 tax year, the threshold will increase from £100,000 to £150,000. However, taxpayers affected by this change do not need to take any immediate action, as the self assessment threshold for the current 2022-23 tax returns remains at £100,000.

Taxpayers falling within the income range of £100,000 to £150,000, who are taxed through PAYE and do not meet other self assessment criteria, will receive a self assessment exit letter if they submit their 2022-23 tax return. From the 2023-24 tax year onwards, individuals will still be required to file a tax return if their PAYE income is below £150,000, but they meet other criteria, such as receiving untaxed income, being a partner in a business partnership, having liability to the High Income Child Benefit Charge, or being self-employed with gross income exceeding £1,000.