Do you need to complete a tax return?

HMRC have once again moved the goal posts for when you need to register for self-assessment. If your employment income was over £100,000 in the 2022/23 tax year, then you will meet the criteria for self-assessment and therefore need to submit a tax return. The submission deadline for self-assessment tax returns for the 2022/23 tax year, is 31 January 2024.

Given employment income is taxed at source through PAYE, you may think there is nothing to declare if this is your only income. However, when your income is above £100,000 it often means the PAYE code being applied is not correct, which is why HMRC now insist on tax returns for all individuals that have income over this level.

HMRC have advised that the employment income threshold is increasing in the current tax year, 2023/24, to £150,000. Even though it may seem like this increase lets you escape the self-assessment net, you need to consider if you meet any of the other self-assessment criteria before asking HMRC to remove the requirement for you to complete a return. Examples of other factors to consider are:

  • Do you have self-employment income over £1,000?
  • Are you a partner in a business?
  • Does your household receive child benefit payments and need to pay the High Income Child Benefit Charge?
  • Are you in receipt of any untaxed income, such as investment income?
  • Do you have reliefs to claim such as pension contributions or gift aid?

The position can change annually, so it is always worth considering your position each year and having a chat with us.

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