Measure
As part of the government’s plan to create a simpler, more effective tax system, taxpayers whose income is entirely taxed through “Pay As You Earn (PAYE)” will be removed from a requirement to file annual self-assessment tax returns.
Tax returns must be submitted in respect of the 2023/24 tax year where individuals have income above £150,000, even where all of that income is taxed under PAYE. These taxpayers will be affected by the removal of the requirement to file tax returns, which will apply with effect from the 2024/25 tax year.
Tax returns filed in respect of the 2024/25 tax year onwards.
This measure will be welcomed by those with income above £150,000 which is all taxed under PAYE as it will reduce their administration requirements. Care will need to be taken in respect of other taxable income sources. For example, individuals with income in excess of £150,000 are taxable on all interest received, which would appear to mean that the taxpayer would still be required to file a self-assessment tax return unless HMRC have collected tax due on that income through PAYE.