HMRC has confirmed the removal of the self assessment filing threshold for individuals with income over £150,000 which is taxed via PAYE from tax year 2024 to 2025.

These changes mean up to 338,000 taxpayers will no longer have to submit a tax return.

It is important to note that if the earner has other income from dividends, savings interest and property rental, for example, they will still have to submit an annual return.

The latest change is in addition to the increase of the threshold from £100,000 to £150,000 which took effect in the 2023 to 2024 tax year.

While the exemption from filing a tax return may sound good on the surface, it is not as straightforward as it sounds as individuals may open themselves up to potential HMRC penalties and overpaid tax.