The government’s plan to take people with PAYE-linked earnings of between £100,000 and £150,000 per annum and no other substantive sources of income, out of the self assessment tax return system will result in many taxpayers in this bracket overpaying taxes, says Blick Rothenberg.

HMRC has confirmed that from tax year 2023 to 2024 onwards, the self assessment threshold for taxpayers taxed through PAYE only, will increase from £100,000 to £150,000.

Affected taxpayers do not need to do anything now as the self assessment threshold for 2022/23 tax returns remains at £100,000. 

They will receive a self assessment exit letter if they submit a 2022-23 return showing income between £100,000 and £150,000 taxed through PAYE and they do not have additional income to report.