The government has announced changes to the threshold at which some taxpayers need to complete a tax return. What’s the full story?
The criteria for the requirement for self-assessment varies between different types of taxpayer. Previously, self-employed traders have enjoyed a turnover threshold of £1,000 with no requirement to register. HMRC has previously announced that the gross income threshold at which sole traders need to complete a tax return will increase from £1,000 to £3,000 before the end of 2029. Until now, it was unclear whether this would apply to other taxpayers.
The government has now confirmed that it will also increase the thresholds used to determine whether an individual needs to complete a self-assessment tax return at gross income of £3,000 for:
- property income (currently £2,500 profit or £10,000 gross income); and
- other taxable income (currently £2,500).
Note. The threshold only applies to the reporting of income, and some affected individuals will still have an income tax liability. HMRC intends to launch a simple online service to collect the tax and will be providing further details on this later in the year.
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