Tax news · June 2026
Being a higher earner on PAYE no longer automatically means a tax return. Here is what changed and when you do still need to file.
For years, employees taxed under PAYE had to start filing a self assessment tax return once their income passed a set level, even if all their tax was already being collected correctly through their salary. That rule has been relaxed. The income level that forced PAYE taxpayers into self assessment was first raised and then removed, so a high salary on its own no longer means you have to complete a return. It is a small but welcome simplification for many employees.
Previously, earning above a certain figure meant you had to register for self assessment regardless of anything else. That income trigger has gone for people taxed under PAYE, on the basis that if your tax is already being collected correctly through your tax code, there is little point in also filing a return. As a result, a number of employees who used to complete a return each year purely because of their salary level no longer need to.
This affects employees whose income is taxed through PAYE and who do not have other reasons to file. If your income comes entirely from a salary and is taxed correctly through your code, you may no longer need to send a return. It does not change anything for people who file for other reasons, such as the self employed, landlords, company directors, or those with significant untaxed income.
It is important to know the situations where a return is still required, because the change is narrower than some headlines suggested. You still need to file if you have self employment or trading income above the trading allowance, rental income, significant savings or dividend income that is not collected through your code, capital gains to report, or if you are liable to the High Income Child Benefit Charge. In other words, a return is now driven by what kind of income you have and what is owed, not simply by how much you earn from a job.
Our honest view is that this is a sensible change that removes a pointless return for employees whose tax is already correct, and it is good to see the system focusing returns where they are actually needed. The risk is that someone wrongly assumes they no longer need to file when they do, for example because they have rental income or a child benefit charge. The safe approach is to check the specific reasons that require a return rather than relying on the income headline. If you are unsure whether you still need to file, it is worth a quick check, because filing when you should not is a waste of time, and not filing when you should brings penalties.
We tell you clearly whether you still need to file, deal with the return if you do, and make sure your tax is correct either way. Book a free call back and we will check your position.
Not automatically. Being a higher earner taxed under PAYE no longer forces you into self assessment by itself. You only need to file if you have another reason, such as self employment, rental income, untaxed savings or dividends, capital gains or the High Income Child Benefit Charge.
It now depends on the type of income you have and the tax owed, not your salary level. If you have business, rental, significant untaxed investment income, gains to report or a child benefit charge, you still need to file. If unsure, it is worth a quick check.
We will check whether you need a tax return and handle it if you do. Book a free call back and we will make it clear.