As we embark on the 2023/24 tax year, there is some news that may bring a smile to the faces of many hardworking individuals. The self assessment (SA) threshold for taxpayers who are solely taxed through PAYE will be increasing to £150,000. Isn’t that fantastic?
This welcomed change was announced in Agent Update 108, and it’s bound to have an impact on taxpayers and accountants alike. However, it’s important to note that for the current tax year, 2022/23, the threshold remains unchanged at £100,000. So, if your income surpasses this limit, you’ll still need to submit a Self-Assessment return for the 2022/23 tax year. But fret not, we’ll guide you through it!
Now, let’s dive deeper into the subject. You might be wondering if this means you can bid farewell to the world of self assessment if your income is below the new threshold. While the increase is certainly good news for many, there are still circumstances in which you may need to complete a self assessment tax return. These include the following:
- If you have any untaxed income, such as rental income or dividends
- If you receive income from overseas sources, it falls under the same requirement.
- Being a partner in a business partnership
- being liable to the High Income Child Benefit Charge
- Self-employed individuals with gross income exceeding £1,000 are also expected to complete a self assessment tax return. So, even if your income taxed through PAYE falls below the new threshold of £150,000.
it’s crucial to consider these additional factors to determine if you still need to submit a tax return.
Keeping track of the changing tax landscape can be daunting, but rest assured, we’re here to assist you every step of the way. Whether you need guidance on understanding the new threshold, navigating self assessment requirements, or seeking clarification on any tax-related matter, our team of experts is just a call or email away.
Disclaimer: This blog post is intended for informational purposes only and should not be construed as professional tax advice. Please consult with a qualified tax professional for personalised guidance based on your specific circumstances.
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