# Do I Need to File Self Assessment if Earning Over £100k on PAYE? Earning over £100,000 on PAYE no longer automatically triggers a UK Self Assessment. Learn about the new thresholds and when you still need to file. **Published:** 2026-07-05 **Updated:** 2026-07-05 **Source:** https://aztajournal.com/gb/over-100k-paye-self-assessment --- > Earning over £100,000 on PAYE no longer automatically triggers a Self Assessment obligation in the UK. Changes introduced for the 2024/25 and 2025/26 tax years mean you only need to file if you have other untaxed income sources or specific circumstances. ## Key Takeaways: £100k PAYE Self Assessment Rules at a Glance If you are negotiating the UK tax system as a high earner, the rules regarding when you must notify HM Revenue and Customs (HMRC) have changed significantly. - **No automatic filing**: Earning over £100,000 entirely through PAYE with no other income no longer requires a Self Assessment return. - **Effective date**: This administrative simplification applies officially from the 2024/25 tax year onwards, including the 2025/26 tax year. - **Other triggers remain**: You must still file if you have untaxed income, such as property rental, dividends, or savings interest above your allowances. - **Taper risk**: High earners suffer a reduction in their Personal Allowance, making accurate tax codes essential to prevent underpaid tax liability. ## Do I need a Self Assessment if I earn over £100k on PAYE? No, you do not automatically need to submit a Self Assessment tax return if your only income is your PAYE salary. From the 2024/25 tax year onwards, HMRC has abolished the income-based registration threshold for workers whose earnings are taxed fully at source. This means that if you are a PAYE employee earning £100,000, £125,000, or more, you are entirely exempt from filing a tax return, provided you have no other taxable income streams. The tax due on your employment earnings is collected directly through your tax code throughout the year. ## What is the new Self Assessment tax return threshold rule? The new Self Assessment tax return threshold rule removes the requirement for individuals with income taxed solely through Pay As You Earn to file a tax return. This administrative policy simplifies tax compliance for thousands of high-earning UK employees. Historically, earning over £100,000 triggered a mandatory tax return. The government temporarily raised this threshold to £150,000 before fully abolishing the income-based filing requirement. This final change was officially confirmed as government policy in the Autumn Statement 2023, point 5.61, which stated that the government would no longer require individuals with income taxed only through PAYE to file a Self Assessment return from 2024/25. ## When do you still need to file a tax return on PAYE? You must still file a Self Assessment return if you have other sources of untaxed income or specific familial tax liabilities. Even if your main salary is taxed via PAYE, several ordinary circumstances will immediately trigger a legal requirement to file. - **Self-employment income**: Having gross non-salaried self-employed business income exceeding £1,000. - **Rental income**: Earning rental income from property that exceeds the £1,000 property allowance. - **Savings interest**: Receiving savings interest above your Personal Savings Allowance, which is £500 for higher-rate taxpayers and £0 for additional-rate taxpayers. - **Dividend income**: Accumulating dividends from shares that exceed the £500 dividend allowance. - **Capital gains**: Making taxable capital gains that exceed the £3,000 annual exempt amount. - **Company directorship**: Acting as a company director, unless your position is entirely salary-only with no added benefits in kind. - **High Income Child Benefit Charge**: Having an adjusted net income over £60,000 while you or your partner claim Child Benefit. - **Employment expenses**: Claiming tax relief on professional employment expenses that exceed £2,500. - **Foreign income**: Receiving taxable income from offshore accounts, foreign properties, or overseas investments. ## How does the Personal Allowance taper affect high PAYE earners? The Personal Allowance taper is a reduction in your tax-free earnings threshold that begins once your adjusted net income exceeds £100,000. For every £2 you earn above this limit, your statutory Personal Allowance decreases by £1, reaching zero when income hits £125,140. This tapering process creates a marginal tax rate of 60% within this specific income band. If your employer does not have the correct, updated tax code from HMRC, your monthly payroll will not deduct enough tax. This mismatch often leaves workers with unpaid tax debts at the end of the year, which must be resolved directly with HMRC. ## What if HMRC has already sent you a notice to file? If HMRC has already sent you an official notice to file, you are legally obligated to complete and submit a Self Assessment tax return. You cannot simply ignore this official request because your circumstances have changed or you believe you fall under the new threshold exemptions. You must submit the requested tax return by the standard deadline to avoid automatic late-filing penalties. The only exception is if you contact HMRC directly and they formally agree to cancel the notice to file on your account. ## What are the Self Assessment deadlines for the tax year? If you meet any of the active criteria requiring you to complete a tax return, you must observe the strict annual schedule. Missing these dates results in immediate financial penalties from HMRC. | Action Required | Statutory Deadline | | --- | --- | | Register for Self Assessment | 5 October 2026 | | Submit Paper Tax Return | 31 October 2026 | | Submit Online Tax Return | 31 January 2027 | | Pay Outstanding Tax Bill | 31 January 2027 | ### What happens if I earn over £100k and don't do a Self Assessment? If you do not have other untaxed income or triggers, nothing happens because you have no legal requirement to file. However, if you do have other criteria requiring a return and fail to file, HMRC will issue automatic financial penalties, charge interest on unpaid tax, and potentially initiate formal debt recovery. ### Does HMRC automatically adjust my tax code if I earn over £100,000? HMRC attempts to adjust your tax code through your PAYE payroll dynamically, but these real-time adjustments are not always accurate. If your income fluctuates, your tax code may fail to account for the personal allowance taper accurately, which often leads to an unexpected tax shortfall. ### Do I have to do a tax return if I only have PAYE income but earn £150,000? No. Under the rules implemented for the 2024/25 tax year onwards, you are not required to file a Self Assessment return if your sole source of income is your PAYE salary, regardless of whether your salary is £150,000 or higher. ### How do I ask HMRC to cancel a notice to file a Self Assessment return? You can request a cancellation by contacting HMRC directly via their official helpline or by using your digital Personal Tax Account online. You must explain that your income is taxed solely through PAYE and that you do not meet any of the other criteria that mandate a tax return.