Earn Over £100,000? Why Checking Your PAYE Tax Could Save You a Surprise Bill
No — earning over £100,000 through PAYE alone no longer means you must file a Self Assessment return (from the 2024/25 tax year). But between £100,000 and £125,140 your personal allowance is withdrawn, and bonuses or commission can leave PAYE short, so it is worth checking your tax after 5 April.
By In Front Accounting · Published 14 May 2026 · Last reviewed 5 November 2026
The short answer
- From the 2024/25 tax year, income over £100,000 (or £150,000 before that) taxed only through PAYE does not by itself mean you must file a Self Assessment return.
- Between £100,000 and £125,140 of adjusted net income your personal allowance is withdrawn, creating an effective 60% Income Tax rate in England, Wales and Northern Ireland (higher for Scottish taxpayers). Bonuses and commission make PAYE estimates harder to get right.
- Check your estimated income during the year, gather your P60 and P11D after 5 April, and review the position in May or June rather than waiting for an HMRC letter.
Earning over £100k? We can prepare and file your Self Assessment return and check your PAYE position.
Get help with my tax returnDo I need a Self Assessment return if I earn over £100,000?
Not because of your income alone. HMRC removed the income-only threshold for PAYE taxpayers with effect from the 2024/25 tax year (6 April 2024 to 5 April 2025) onwards. Before that, PAYE income over £100,000 (and £150,000 for earlier years) was itself a reason to file.
Other triggers still apply. You may need to file if you have self-employment income, untaxed income, rental income, dividends, certain capital gains, foreign income, or a High Income Child Benefit Charge not collected through PAYE. You must also file if HMRC sends you a notice to do so.
Check HMRC’s guidance on who must send a tax return, or use the online checker.
Why PAYE can be difficult to get right with variable earnings
PAYE works from your tax code and an estimate of your annual income. When a bonus lands mid-year, commission changes, or a taxable benefit starts, that estimate can fall behind.
Your employer can run payroll correctly and you can still end up underpaid. Variable pay creates a risk of an inaccurate estimate; it does not guarantee an error. Many people with bonuses pay exactly the right tax, or are even overpaid — the only way to know is to check.
The £100,000 tax trap
The £12,570 personal allowance reduces by £1 for every £2 of adjusted net income over £100,000, reaching nil at £125,140 (HMRC Income Tax rates). This taper applies UK-wide, including to Scottish taxpayers.
| Adjusted net income | Personal allowance | What it means |
|---|---|---|
| £100,000 | £12,570 | Full allowance still available |
| £110,000 | £7,570 | £5,000 of allowance lost |
| £125,140 | £0 | Allowance fully withdrawn |
On income in this band, the effective Income Tax rate is 60% for taxpayers in England, Wales and Northern Ireland (40% higher rate plus the lost allowance), before National Insurance. Scottish Income Tax rates are different, so the effective rate in the band is higher for Scottish taxpayers — check the bands for your year.
Adjusted net income is not always your headline salary. Qualifying pension contributions and Gift Aid donations can reduce it.
How an unexpected bill can arise
An illustrative example: a £95,000 salary plus a £25,000 bonus or commission gives £120,000 of total earnings. Pension contributions, benefits and other income will change the adjusted net income figure.
If HMRC’s estimate and your tax code still assume around £95,000, your code may give you more personal allowance than you are entitled to. PAYE could then under-deduct, and the shortfall may only surface after the year ends. The actual amount depends entirely on your circumstances.
HMRC usually reconciles PAYE after the tax year and may send a P800 or Simple Assessment between June and March of the following tax year (HMRC guidance).
Our recommendation: check early, don’t wait for a letter
- During the year: check your HMRC personal tax account and update your estimated income and tax code when a bonus or commission changes.
- After 5 April: collect your P60, any P11D, bonus details, benefits, pension contributions and other income.
- In May or June: review the position. Ask an accountant to review it — this does not require you to be in Self Assessment — or, where you are registered or HMRC has asked you to file, submit a return, so you see any liability or refund sooner and can plan for it.
For 2025/26 (ended 5 April 2026), a return can be filed from 6 April 2026 once your figures are available. Filing early does not mean paying early: a balancing payment would normally be due by 31 January 2027. Before filing voluntarily, check whether you are registered and whether HMRC has issued a notice to file; HMRC may not accept a registration from someone who meets none of the filing criteria, so a PAYE review is often the simpler route.
If you don’t need to file, an up-to-date PAYE estimate, a call to HMRC and a salary calculator check can be enough. HMRC may reconcile without a return, so Self Assessment is not the best route for everyone.
Use a salary calculator to sense-check PAYE
The Salary Calculator (thesalarycalculator.co.uk) gives an illustrative estimate of your take-home pay. Choose the correct tax year and enter your bonus, pension, student loan and taxable benefits.
Compare the result with your payslips. It is a useful sanity check, not a substitute for a full tax reconciliation or accountancy advice.
Self Assessment for high earners
Earning over £100k? Let us file your Self Assessment return
We prepare and file your return on your behalf, reconcile it against your P60, P11D, bonuses and pension contributions, and explain any tax due before the deadline — so there are fewer surprises. If a return isn’t needed, we’ll tell you.
- No obligation enquiry
- ACCA-qualified review
- Return filed with HMRC for you
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Common Questions
Do I need to submit a Self Assessment tax return if I earn over £100,000 in the UK?
Not because of income alone. From the 2024/25 tax year, PAYE-only income over £100,000 does not by itself require a return. You still need to file if another trigger applies, such as self-employment, rental or other untaxed income, dividends above the allowance, a High Income Child Benefit Charge not collected through PAYE, or a notice to file from HMRC.
Why do bonuses and commission lead to unexpected PAYE tax bills?
PAYE uses a tax code based on an estimate of your annual income. A bonus or commission can push adjusted net income above £100,000, where the personal allowance is withdrawn by £1 for every £2 up to £125,140. If your code still assumes the lower figure, too little tax may be deducted and HMRC may later issue a P800 or Simple Assessment. Not everyone with a bonus is underpaid.
Should I file a Self Assessment return voluntarily?
Only if it suits your situation. If you are already registered or HMRC has asked you to file, filing in May or June after the tax year ends on 5 April shows any liability early, while payment is still normally due by 31 January. If you meet no filing criteria, an accountant can review your PAYE position without you entering Self Assessment.
Last reviewed 5 November 2026. General UK tax guidance, not personalised advice. Official sources: HMRC Agent Update 138; who must send a tax return; Income Tax rates; check Income Tax for the current year; tax overpayments and underpayments; sending a return; adjusted net income; Scottish Income Tax. The salary calculator is a third-party site.