Do I need to submit a self-assessment tax return?

This is a common query we receive and since HMRC have updated the income threshold for PAYE earners, here is a summary of the current position.

From the 2023/2024 tax year onwards, the self-assessment threshold for PAYE taxpayers will rise to £150,000. This means that you only need to submit a self-assessment tax return if your gross taxable salary income exceeds £150,000 or you receive income from sources.

If you submitted a 2022-23 return showing income between £100,000 and £150,000 taxed through PAYE and do not meet any of the other criteria for submitting a self-assessment return, you should have received a self-assessment exit letter from HMRC. 

You might still need to submit a tax return even if your income taxed through PAYE is below £150,000.

Here are some examples of when you may still need to submit:

  • Receipt of any untaxed income: If individuals receive income that hasn’t been subject to tax withholding, they need to submit a self-assessment tax return, such as dividends or interest above the savings allowance.
  • Receipt of rental income from property: Individuals who receive rental income which exceeds £1,000 either from a second property, or renting out their own home during certain periods, must file a self-assessment tax return.
  • Partner in a business partnership: Individuals who are partners in a business partnership need to file a self-assessment return regardless of their income level.
  • Liability to the high-income child benefit charge: If taxpayers have a liability for this, they are required to submit a self-assessment tax return.
  • Self-employed individuals with gross income over £1,000: Self-employed individuals whose gross income from self-employment exceeds £1,000 must file a self-assessment return.
  • Sale of assets in the year: Such as properties, crypto, shares or investments held outside an ISA wrapper and have realised capital gains, or the proceeds received during the year exceeded £50,000.

If you are unsure whether you need to file a self-assessment tax return, please contact our private client team.