What is the tax return threshold for high earners?

For the tax year 2023/24 (6th April 2023 to 5th April 2024) the threshold for individuals only taxed through PAYE changed. 

Previously, those earning more than £100,000 needed to complete a tax return, but from the year 2023/24 this was changed to £150,000. Where you previously had to complete a tax return under HMRC rules, you now do not need to. 

If you have received savings and/or dividend income, you may need to seek advice as you may have exceeded the allowances for these income and tax may be payable. Banks do communicate to HMRC the interest an individual earns, and HMRC will then adjust your PAYE tax code to collect the tax. Ask your accountant if you are not sure if your tax code is correct. 

If there is a delay in HMRC issuing the adjustment, they will instead send a tax demand notice to the individual. 

HMRC does not receive information about dividend income so if this exceeds your dividend allowance, you should notify HMRC through your personal tax account or call them. 

If you have other income that has not been taxed, i.e. property, side hustle or self-employment, or you are in receipt of child benefit you may still need to complete a tax return. 

From 6th April 2024, individuals who have all their earnings taxed through PAYE will not be required to file a tax return, regardless of the level of their earnings. 

We can help you file your self-assessment tax return 

If you would like advice on completing your tax return, we can help. We offer a range of tax advice and are well-versed in assisting with tax returns, tax code checks and tax planning. For a free initial consultation, call us today on 0161 7140464 or drop us a line using our online enquiry form. 

Date published 15 May 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

---