Good day to all. I trust this article finds you in good spirits. Today, I am going to elucidate a new change in the tax regime that we should all be aware of. If you're already yawning, hold on! This might be more interesting than you think.
From the tax year 2023-24 onwards, a significant change is afoot in the tax arena. The Self Assessment threshold for individuals taxed through PAYE only is set to increase from £100,000 to a more considerable £150,000. A change, I'm sure you'll agree, that is quite noteworthy.
Now, before you make any hasty moves, bear in mind that this alteration will not have an effect on the 2022 to 2023 tax returns. The threshold for these remains steadfast at £100,000. However, if you have submitted a 2022-23 return with an income between £100,000 and £150,000, taxed through PAYE, expect to receive a Self Assessment exit letter.
Yet, it's not quite as straightforward as it may initially seem. You will still need to submit a self-assessment return for the 2023-24 tax year if your income taxed through PAYE falls below £150,000 but meets one of several specific criteria:
- You receive any untaxed income.
- You are a partner in a business partnership.
- You have a liability to the High Income Child Benefit Charge.
- You are self-employed with a gross income of over £1,000.
Thus, while there is an increase in the threshold, certain factors will still necessitate a self-assessment return. A fair warning to those who thought they were off the hook!
To conclude, it's always essential to keep abreast of the changing tax landscape. While tax may not be the most riveting topic for some, its implications are far-reaching and can have a significant impact on your finances. So, let's face these changes head-on and with a full understanding of what they mean for us.
As always, if any of this information leaves you scratching your head or if you have any other queries about how these changes will affect you, our team at Chadwick Accountants is here to help. Feel free to drop us a line at [email protected]. Until next time, stay informed and stay ahead.
