Self Assessment Threshold Change: How does this effect tax payments?

Hey all, So it’s came to my attention that taxpayers whose only income is taxed under PAYE, and who earn between £100,000 and £150,000, will be removed from self assessment. I will earn around £110,000 this year (exclusively through PAYE), meaning I will no longer be required to fill a self assessment. However, since I lose a portion of my personal allowance this year for being over £100,000, I will have a tax bill to pay over £1000. - How do you pay a tax bill if you’re not expected to file a tax return? Will this be adjusted for automatically in my PAYE after the P60 is released in a few weeks? - If your tax bill is more than £1,000, you generally need to make ‘payments on account’ - these are advance payments towards the following year’s tax bill - so I am wondering if this can be avoided now, since I hope I can keep all my future tax payments within PAYE?

Hi 

As you no longer meet Self Assessment criteria then HMRC would review your records at the tax year end. If underpaid you will be issued a calculation and if the underpayment is less than £3000 it will be collected in the next full tax years tax code. 

Thank you

Thank you for this response. And should one earn between £100,000 and £150,000 under PAYE and underpay by OVER £3000, what is the necessary procedure then? Cheers.

Hi,

If we can't collect your underpayment through your code and you're not a Self Assessment customer, you can pay via Simple Assessment instead. More information on Simple Assessment can be found here.

Pay your Simple Assessment tax bill

Thank you.