Changes revealed for Self-Assessment tax return threshold for the 2023-2024 tax year

HM Revenue & Customs (HMRC) has disclosed its intentions to elevate the income threshold that requires individuals to submit a Self-Assessment tax return.

This adjustment is due to take effect from the 2023-2024 tax year.

What are the current rules?

For the current tax period (2022-2023), individuals are obligated to send a Self-Assessment tax return if they have earnt over £1,000 in the last year as a sole trader.

Individuals also must submit a tax return if they were part of a business partnership or if they have a generated income of £100,000 or more.

What are the new proposed changes?

HMRC has proclaimed that from the 2023-2024 tax year, the income threshold demanding the submission of a Self-Assessment form will be elevated from £100,000 to £150,000.

This amendment is anticipated to be favourably received by numerous employees across the UK.

Despite this, individuals who now fall below this revised threshold are still required to send a Self-Assessment form if they fulfil any of the following prerequisites:

This development follows the recent HMRC revisions to the tax rate threshold for the tax year 2023-2024. The revised policy stipulates that individuals earning over £124,140 will now be subjected to an additional tax rate of 45 per cent.

These proposed amendments are projected to result in a higher tax obligation for thousands of taxpayers, considering the former threshold was an annual income of £150,000.

If you would like advice on how to submit a Self-Assessment tax return, get in touch today.

Cloud Accounting Experts

Xero Intuit QuickBooks Sage Dext

Latest Insights

Make an enquiry

Have a question? Contact us and a member of our team will get back to you.

If you would like to see full details of our data practices please visit our Privacy Policy and if you have any questions please email privacy@thomascoombs.com.

Awards and accreditations