HMRC writes to £100k-£150k earners about tax return overhaul

HMRC writes to £100k-£150k earners about tax return overhaul

May 3, 2024

Anyone earning between £100,000 and £150,000 should have received a letter from HMRC warning them about significant changes to the rules on tax returns

People earning between £100,000 and £150,000 will no longer automatically have to file a self assessment return if they are paid through PAYE and have no other income, after the employment income threshold was raised for the 2023/24 tax year.

HMRC has sent letters to affected taxpayers ‘to confirm that they do not need to complete a tax return, if they submitted a 2022-23 tax return showing income of between £100,000 and £150,000 that is taxed through PAYE, and they do not meet any of the other criteria for being in self assessment’.

For the 2023-24 tax year, taxpayers 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, such as:

• they receive any untaxed income over £2,500;

• they are a partner in a business partnership;

• pay the high income child benefit charge (HICBC);

• are self-employed with gross business income over £1,000.

From the tax year 2024-25 onwards, the income threshold to complete a tax return for PAYE only taxpayers will be removed completely.

Taxpayers will still be required to submit a return if they meet any of the other criteria listed above.

HMRC recommends people use its online tool to check whether they need to submit a tax return.