If your net income is between £100,000 and £150,000, you should expect a letter from HM Revenue & Customs (HMRC) informing you of changes to your tax return requirements.
Your net adjusted income is defined by your total taxable income before Personal Allowance is applied, but after certain reliefs have been applied.
Previously, those earning between £100,000 and £150,000 have been required to file a Self-Assessment tax return. However, this is set to change for the 2023/24 tax year.
You will not need to automatically file a Self-Assessment tax return for the previous 2023/24 tax year. This is as long as you meet the criteria listed below:
If you do not meet these requirements, you will still need to file a Self-Assessment tax return for the 2023/24 tax year. To do this, you must register for Self-Assessment by 5 October 2024 and submit it by 31 January 2025.
If you do need to file a Self-Assessment return for 2023/24, it is important to remember that Personal Allowance decreases by £1 for every £2 you earn over £100,000. This means that the Personal Allowance is effectively removed if you earn over £125,140.
The above changes are part of a transition to remove the need for PAYE-only taxpayers to file a Self-Assessment return.
The requirement for PAYE-only taxpayers to file a Self-Assessment tax return has been completely removed for the 2024/25 tax year.
If you need advice on filing your Self-Assessment tax return, please get in touch with our team today.
