The Government has recently released a series of tax updates and changes, one of them being about the self assessment threshold change which will be commencing from the 2023/2024 tax year.

From tax year 2023 to 2024 onwards, the Self Assessment threshold for customers taxed through PAYE only, has changed from £100,000 to £150,000.

Affected customers do not need to do anything now as the Self Assessment threshold for 2022 to 2023 tax returns remains at £100,000. They will receive a Self Assessment exit letter if they submit a 2022 to 2023 return showing income between £100,000 and £150,000 taxed through PAYE, and they do not meet any of the other criteria for submitting a Self Assessment return.

For the 2023 to 2024 tax year onwards, customers will still need to submit a tax return if their income taxed through PAYE is below £150,000 but they meet one of the other criteria for submitting a Self Assessment return, such as:

• 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

Who must send a tax return

You must send a tax return if, in the last tax year (6 April to 5 April), any of the following applied:

• you were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)
• you were a partner in a business partnership
• you earned £100,000 or more

You may also need to send a tax return if you have any untaxed income, such as:

• some COVID-19 grant or support payments
• money from renting out a property
• tips and commission
• income from savings, investments and dividends
• foreign income

Other reasons for sending a return

You can choose to fill in a tax return to:

• claim some Income Tax reliefs
• prove you’re self-employed, for example to claim Tax-Free Childcare or Maternity Allowance

If you get Child Benefit

If your income (or your partner’s, if you have one) was over £50,000, you may need to send a return and pay the High Income Child Benefit Charge.

If you no longer need to send a tax return

You must tell HMRC if you believe you no longer need to send a tax return.If HMRC agrees, they’ll send a letter confirming you do not need to file a return.You may have to pay a penalty if HMRC do not agree before the Self Assessment deadline of 31 January.

You might no longer need to send a return because, for example:

• you’re retired
• you’re no longer self-employed
• your income is below the threshold

If you want to know more about self assessment contact us directly right now!! Our team of professional accountants and advisers at Cangaf will not waste a single moment to get in touch with you! 

Have a wonderful day and see you next time!! 😁