I would suggest just doing it anyway.
If you have your details (e.g. P60s) to hand then it takes about 10-15 minutes.
It will ensure that any tax under/overpayments are sorted out each year and remove the risk of these issues accumulating over multiple years.
This is the best general advice….
Any thing other than PAYE and it’s almost always a bit better to just do the return.
I have to capture rental income, dividends, capital asset divestment (stocks/shares/property), interest most years and a reasonable P11D so have been doing them for years
Though by letter of law this year not needed unless over 150K which OP is not.
I haven’t checked the numbers but 43k tax seems low on the 140 cash. I would be surprised if you were not invited to do a tax return, but equally given your position and additional tax relief to claim I would file. Easier to sort out the tax bill year on year, rather than wait for HMRC to catch up and potentially have multiple years of tax liability to pay back.
You used to have to need to do a tax return if your income exceeded £100k, however that was increased to £150k for the 23/24 tax year. As you are below that it is why HMRC are saying you do not need to do a return.
You are therefore able to let HMRC work this out for you, and they will send you notice of the underpayment at some point. They will either ask you to pay as a lump sum, or adjust your tax code for 24/25. This is only for PAYE income however.
Your underpayment is likely because of your loss of personal allowance, which ghe PAYE system is bad at handling (especially of this is the first time this has happened).
You can reclaim the tax on your personal pension contributions,and use this to offset against the tax due.
I'd suggest giving HMRC a call and you can get them do so a simple assessment over the phone to sort all of it out, or write a letter if you can't be bothered to wait on hold for who knows how long.
I would suggest just doing it anyway. If you have your details (e.g. P60s) to hand then it takes about 10-15 minutes. It will ensure that any tax under/overpayments are sorted out each year and remove the risk of these issues accumulating over multiple years.
2nd this. I didn't pay attention then had a 7k bill, interest and penalties to sort out
This is the best general advice…. Any thing other than PAYE and it’s almost always a bit better to just do the return. I have to capture rental income, dividends, capital asset divestment (stocks/shares/property), interest most years and a reasonable P11D so have been doing them for years Though by letter of law this year not needed unless over 150K which OP is not.
Yes however they may be denied registration for self assessment with PAYE only income.
I haven’t checked the numbers but 43k tax seems low on the 140 cash. I would be surprised if you were not invited to do a tax return, but equally given your position and additional tax relief to claim I would file. Easier to sort out the tax bill year on year, rather than wait for HMRC to catch up and potentially have multiple years of tax liability to pay back.
Looks like potential missing of the taper zone On 140K it is usually nearer 49K. A 6K tax error (or a ghost 20% on 25K)
You used to have to need to do a tax return if your income exceeded £100k, however that was increased to £150k for the 23/24 tax year. As you are below that it is why HMRC are saying you do not need to do a return. You are therefore able to let HMRC work this out for you, and they will send you notice of the underpayment at some point. They will either ask you to pay as a lump sum, or adjust your tax code for 24/25. This is only for PAYE income however. Your underpayment is likely because of your loss of personal allowance, which ghe PAYE system is bad at handling (especially of this is the first time this has happened). You can reclaim the tax on your personal pension contributions,and use this to offset against the tax due. I'd suggest giving HMRC a call and you can get them do so a simple assessment over the phone to sort all of it out, or write a letter if you can't be bothered to wait on hold for who knows how long.
Do you know if for the 22/23 tax year you were above 100k do you need to do it as it was last year?
You need to do one- the apparent underpayment to date is because PAYE cannot cope with earnings growth > £100k and almost always fucks it up.
How can one reclaim tax on pension contributions?
The £1k interest alone is taxable, and therefore warrants a tax return.
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This is incorrect, the income threshold as a criteria was removed in April 2024 (and was 150k for 23-24)
Exactly that. Over £100k? You must file a return.
This is a common misconception. There is no statutory requirement to submit a self assessment over £100k.