---
title: "Did the tax return threshold change for high-earners in 2026/27?"
description: "When reviewing compliance requirements for the 2026/27 tax year, many professionals ask: *did the tax return threshold change for high-earners?* The short answer is yes. The government has fundamentally shifted the filing criteria, meaning that a high salary alone no longer triggers…"
url: "https://www.accountingfirms.co.uk/knowledge-bank/did-the-tax-return-threshold-change-for-high-earners/"
updated: "2026-08-11"
category: "High-earner tax"
---

# Did the tax return threshold change for high-earners in 2026/27?

When reviewing compliance requirements for the 2026/27 tax year, many professionals ask: *did the tax return threshold change for high-earners?* The short answer is yes. The government has fundamentally shifted the filing criteria, meaning that a high salary alone no longer triggers an automatic obligation to file a Self Assessment tax return.

Below, we exhaustively detail the filing thresholds, exceptions, and allowances applicable to high-earning individuals for the 2026/27 tax year.

## Removal of the PAYE-only income threshold

Historically, HM Revenue & Customs (HMRC) required individuals earning over a specific threshold to file a [Self Assessment](https://www.accountingfirms.co.uk/blog/balanced-workload-during-tax-season/) return, even if their income was taxed entirely through Pay As You Earn (PAYE). This threshold stood at £100,000 before rising to £150,000 for the 2023/24 tax year.

However, the government abolished this requirement entirely from the 2024/25 tax year onwards. Consequently, for the 2026/27 tax year, high-earning individuals who receive their income exclusively through PAYE do not need to file a [tax return](https://www.accountingfirms.co.uk/blog/role-of-accountants-in-mergers-and-acquisitions/) solely because of the size of their salary.

> **Note on authority divergence:** While HMRC's Employment Income Manual at EIM71410 still references the £150,000 threshold for 2024-25 , the Autumn Statement 2023 announcement removing the threshold altogether represents the enacted policy change and takes precedence .

## High Income Child Benefit Charge (HICBC)

Even with the general income threshold removed, high earners may still need to file a return if they or their partner receive Child Benefit.

Under section 681B of the [Income Tax](https://www.accountingfirms.co.uk/blog/hmrc-payment-niers/) (Earnings and Pensions) Act 2003 (ITEPA 2003), a person becomes liable to the HICBC if their adjusted net income exceeds £60,000 and they (or their partner) receive Child Benefit. The government increased this threshold from £50,000 to £60,000 on 6 April 2024, and this limit remains in place for 2026/27.

The charge applies at a rate of 1% for every £200 of income above the £60,000 threshold.

- **Application:** If a taxpayer has an adjusted net income of £70,000, they must repay 50% of their Child Benefit.
- **Full withdrawal:** The charge fully offsets the Child Benefit once the taxpayer's adjusted net income reaches £80,000.

Individuals liable to the HICBC must [register for Self Assessment](https://www.accountingfirms.co.uk/blog/time-to-pay-arrangements-practicalities/) to declare and pay the charge. Alternatively, taxpayers can elect to opt out of receiving Child Benefit payments to avoid the Self Assessment filing obligation altogether.

## Sole traders, landlords, and Making Tax Digital (MTD)

For high-earners who supplement their PAYE income with self-employment or property income, the 2026/27 tax year brings significant changes. [Making Tax Digital](https://www.accountingfirms.co.uk/blog/helping-accounting-clients-move-to-the-cloud/) for Income Tax Self Assessment (MTD for ITSA) officially launches on 6 April 2026.

Sole traders and landlords must use MTD-compatible software to keep digital records and submit quarterly updates if their total qualifying gross income exceeds £50,000. If a taxpayer's qualifying income drops below this threshold for three consecutive tax years, they may choose to opt out of the MTD regime.

## Untaxed income: Dividends and Capital Gains

High-earners often hold substantial investment portfolios, which carry separate reporting thresholds.

### **Dividend Income**

The Dividend Allowance for the 2026/27 tax year is £500. Taxpayers must report dividend income exceeding this allowance to HMRC and pay tax based on their marginal rate band:

- Basic rate: 10.75%
- Higher rate: 35.75%
- Additional rate: 39.35%

### **Capital Gains Tax (CGT)**

The Annual Exempt Amount for individuals is £3,000 for the 2026/27 tax year. Taxpayers must file a Self Assessment return to report and pay CGT on overall gains exceeding this £3,000 allowance. For trusts, the allowance is limited to £1,500.

## Summary of 2026/27 Tax Thresholds and Filing Triggers

| Category | Provision / Event | 2026/27 Threshold / Amount | Outcome / Filing Requirement |
| --- | --- | --- | --- |
| **PAYE Income** | Autumn Statement 2023 | N/A (Threshold removed) | No automatic SA filing required purely for high PAYE income. |
| **HICBC** | s 681B ITEPA 2003 | £60,000 (Adjusted Net Income) | SA return required to report and pay the charge, unless opted out of Child Benefit. |
| **MTD for ITSA** | Launching 6 April 2026 | £50,000 (Qualifying gross income) | Must keep digital records and submit quarterly updates via software. |
| **Dividends** | Dividend Allowance | £500 | Must report dividend income over £500. |
| **Capital Gains** | Annual Exempt Amount | £3,000 | Must report gains exceeding £3,000. |
| **Personal Allowance** | s 35 ITA 2007 | £12,570 (Frozen to 2028) | Reduced by £1 for every £2 of income over £100,000. |

For completeness, remember that the Personal Allowance remains frozen at £12,570 through to the 2027/28 tax year. High-earners continue to lose their Personal Allowance at a rate of £1 for every £2 of adjusted net income above £100,000 under section 35(2) of the Income Tax Act 2007.

 

*Next steps: Review your clients' adjusted net income calculations to confirm whether they fall within the £60,000 to £80,000 HICBC taper band for 2026/27, and assess their readiness for MTD for ITSA if they possess property or trading income over £50,000.*