Soke Accounting

You get earn PAYE salary over £100k and you think all your work is done. Unfortunately, you do still have to fill out a self assessment to HMRC.

HMRC Compliance for Earnings Over £100,000: What You Need to Know in 2024

it’s crucial to understand your obligations if your earnings (Total Taxable income) exceed £100,000. Navigating HMRC compliance can seem complex, but staying informed helps ensure you fulfil your tax responsibilities accurately and avoid penalties. Here’s a breakdown of key points to remember:

Key Considerations:

• Personal Allowance Reduction: Earning over £100,000 gradually reduces your personal allowance, reaching zero at £125,140. This means more of your income falls into higher tax brackets.
• Self Assessment: While not mandatory for everyone above £100,000, it’s often recommended. This ensures you declare all taxable income accurately, including rental income, dividends, or capital gains.
• Record Keeping: Maintain meticulous records of income and expenses throughout the year. This simplifies completing your tax return and avoids potential issues with HMRC.
• Payment Deadlines: Self Assessment tax returns for the 2023/24 tax year are due by January 31st, 2025. The first tax payment deadline is January 31st, 2025.

Additional Resources:

• HMRC Website: The official HMRC website offers comprehensive information on tax obligations for different income brackets. Find details on Self Assessment, tax rates, and deadlines: https://www.gov.uk/sa302-tax-calculation
• Tax Agent: Consider seeking professional guidance from a qualified tax agent or accountant, especially if your financial situation is complex.

Remember:

• This blog update provides general information and shouldn’t be considered individual tax advice.
• Consult HMRC directly or seek professional advice if you have specific questions or uncertainties regarding your tax obligations.

By staying informed and organised, you can ensure HMRC compliance and avoid unnecessary complications. Remember, fulfilling your tax responsibilities contributes to essential public services and infrastructure at SOKE accounting we can assist you in your compliance.