Self-assessment/over £100k

[Airdustmoon]

I’m so confused about self-assessment, can anyone help.

My income has gone over £100k for the first time in 2023/24 so I thought I’d need to register for self-assessment. But now I’ve read that as of this year, you don’t need to register until income hits £150k? But I know I’ve underpaid via PAYE because my tax code hasn’t been reduced to take account of losing some personal allowance. I also have other issues which need to be reported, like interest on savings and I need to claim higher rate relief on my pension contributions. So should I register for self-assessment anyway? Otherwise how will HMRC sort out my tax for this year? I want to get it all sorted because it’s a bonus that has taken me over the £100k threshold and I’m not able to spend a lot of it until I know how much I will have to pay back in tax.

There is an online checker on Gov.uk, but basically it only goes up to 5 April 2023, so you have time to see if the amount of income goes up, but at the moment yes you will have to complete a tax return by January 2025, Any tax to pay will not be due till January 2025. I wouldn’t register until you know what the threshold will be. Interest on savings, if you need to pay tax, this will be sorted by HMRC via your tax code. You can call the help line, but probably not this month as many people still won’t have completed their Tax Returns for the current year. Maybe once you get your P60 beginning of April, you will have accurate figures.

Does your company offer salary sacrifice. If you can pay your pension via this route you can get your salary under the 100k mark
Sorry not quite answered your question.

Thanks both. @Mangolover123 Unfortunately my company doesn’t offer salary sacrifice pension. Even if it did I’ve gone too far over £100k.

@Mindymomo the threshold for registration is definitely increasing to £150k. It seems very strange as anyone who goes over £100k due to a bonus like me won’t be on the right tax code. I think I’m just going to have to contact HMRC to sort it out. My bonus is variable so I don’t really want them to change my tax code as then I could end up overpaying if I get a smaller bonus in future. As you suggest I’ll wait until after the deadline for this year though as they won’t want to hear from me now!

If I was you I would get an inexpensive online accountant to sort it out

HMRC may adjust your tax code in 2024/2025 to account for the underpaid tax for this tax year.
For the next tax year, you can inform HMRC via your personal tax account your expected income for 2024/2025 so that the issue does not arise again.

If it’s all through PAYE, HMRC will work out what you owe and issue a calculation after the end of the year.

If you know how much your salary is you should update your tax code now so it’s less to pay later.

Why not just register for self assessment? Then you know you pay the correct tax.

Why not just register for self assessment? Then you know you pay the correct tax.

With different sources of income an investment of £300-£400 for an accountant to do your tax return is well worth the money