Changes to self assessment criteria

The increase in the SA threshold was announced in Agent Update 108. The threshold for the 2022/23 tax year, which many taxpayers and accountants will currently be preparing, remains unchanged at £100,000. This means that people who are taxed through PAYE only will still need to submit an SA return for 2022/23 if their income exceeds £100,000.  

From the 2023/24 tax year, the threshold will increase to £150,000. However, if a taxpayer meets one of the other SA criteria, they will still be required to submit an SA return. Other criteria currently include:  

• liability to the high income child benefit charge; 
• receipt of self-employment income over £1,000; and 
• receipt of untaxed income of £2,500 or more.  

The SA criteria are administrative parameters used by HMRC to decide whether a person should submit a tax return. However, the criteria are not set out in legislation.  

Taxpayers can use HMRC’s online tool to check whether they need to submit a tax return. Further detail on the SA criteria can be found in HMRC’s self assessment manual. Taxpayers who have a tax liability but do not fall within any of the SA criteria, may need to contact HMRC and arrange for the tax to be collected through PAYE using their tax code. 

HMRC is reviewing the operation of the SA criteria in its discussion document Simplifying and modernising HMRC’s Income Tax services through the tax administration framework. Among other questions, the consultation asks for feedback on how taxpayers understand and navigate the SA criteria, and opportunities for reform. The deadline for responding to the consultation is 7 June 2023. 

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