SAM100050 - Records: set up taxpayer record: criteria for a PAYE / SA record
Source: gov.uk (2025-11-06)


During day to day work an SA record is required for a year where
- The latest employment, Job Seekers Allowance, or Incapacity Benefit claim, or Occupational pension is live
And one of the following criteria is present
- total taxable income of more than £100,000 for tax years 17/18 to 22/23, £150,000 for tax year 23/24. All years up to 23/24 include employment benefits before allowances and tax reliefs are set off. For 24/25 onwards this criteria does not apply.
Or
- The individual or their partner is entitled to receive Child Benefit (or someone else claims Child Benefit for a child who lives with the individual) which is liable to the High Income Child Benefit Charge (from 2012 to 2013), and the individual has the higher adjusted net income. For tax years 2024/25 onwards High Income Child Benefit charge is SA criteria only if the customer chooses not to pay the charge via the PAYE service
Or
- The latest coding contains
- Any expenses or professional subscriptions of more than £2500
- Other earnings from part time earnings, other income (not earnings) commission, income from property, tips are in excess of £2500
Notes:

1. The reconciliation of all years on PAYE, prior to the case being set up in SA, should be dealt with in accordance with PAYE93032 and PAYE93033

2. If the total expenses claimed are over £2500 the case should be set up on SA (or the SA record reactivated, if dormant) for the year to which the expenses claim relates. If the claim is for CY, update the SA record so that an SA tax return will be issued in April. If the claim is for a year earlier than CY and a return has not already been issued, issue one now

3. For 2015 to 2016 and previous years, an SA return is not required where untaxed interest is less than £2500, or where the untaxed interest is more than £2500 but there is no tax liability

4. For tax years 2016 to 2017 onwards, a return is not required where a taxpayer is in receipt of
- savings and investment income of £10,000 or less before tax, or
- dividend income of £10,000 or less before tax
5. Where the taxpayer is in receipt of income from self employment shown on a self employment page but included in their code number, there will always be a requirement for the taxpayer to submit an SA return even if the income is below £2500

6. If the gross income from property exceeds £10,000 irrespective of the amount of expenses to be set off, an SA record is required. For example, gross income from property of £11,000 less expenses of £9,500 gives a net income of £1,500 to be included as a deduction in the code - an SA record is required

7. If a loss arises on income from property and gross income is less than £10,000, or Rent A Room income is below the exempt amount, an SA record is not required. Note: If the taxpayer is unable to provide details regarding a new source, an SA record is required

8. Where the taxpayer is a UK resident seafarer and wishes to claim Seafarers Earnings Deduction (SED) they can register for SA and make their claim on the SA return. Those seafarers who are non-UK residents and wish to claim SED must do so on form R43M and should not be set up in SA

Other circumstances
- In receipt of income from self employment (this includes foster carers) or partnership (partnership returns will also be required)
- A minister of religion (of any faith or denomination)
- A sharefisherman
- In receipt of untaxed income of £2500 or more and there is tax liability (some pensioners may be able to pay the tax on this through their PAYE coding). For years up to, and including, 2015 to 2016, this includes cases where personal allowances do not cover state pension and there is no source of income. For 2016 to 2017 onwards these cases will be dealt with under PAYE
- Non-resident landlords
- In receipt of income from the letting of property or land (if net income is less than £2500 a year they may be exempt unless part 4 of notes above applies). See also Note 5 and 6 above regarding gross income, losses or exempt amounts
- Name or member of Lloyds
- In receipt of savings or investment income (from which tax has been deducted) of £10,000 or more (before tax)
- In receipt of (or treated as received) income from a trust or settlement or any income from the estate of a deceased person, and further tax is due on that income
- In receipt of unauthorised payments from a pension scheme which are liable to a tax charge, including those payments which are liable to unauthorised payment surcharge
- Makes a claim for repayment of tax deducted from sick pay refunded to the employer, when in receipt of compensation for loss of earnings due to injury at work which covers that sick pay. Note: This will apply only for a closed year where refund is made in the following year
- Makes a claim for Community Investment Tax Relief
- Enterprise Investment Schemes Relief, Seed Enterprise Investment Scheme Relief or Social Investment Tax Relief where the relief claimed for each item is £10000 or more
- Expats
Where the EXPAT signal is set and
- The taxpayer is working wholly, or partly, in the UK for a UK resident employer, on assignment, while remaining employed by an overseas employer, or
- The taxpayer is assigned to work wholly, or partly, in the UK at a recognised branch of their overseas employers business
- All individuals included by an employer within a dedicated expatriate scheme
- All individuals included by an employer within an expatriate modified PAYE scheme
- From April 2011 those individuals with an annual allowance charge
- An SA return should be completed together with Capital Gains pages where the individual has Capital Gains to pay after the annual exemption, unless this has ben declared on the Real Time Transaction Service and there is no other SA criteria.
- From April 2011 those individuals with an annual allowance pension charge
- An SA return should be completed together with Capital Gains pages where the individual has Capital Gains to pay after the annual exemption, unless this has been declared on the Real Time Transaction Service and there are no other SA criteria.
Paying tax on foreign income

You usually need to fill in a Self Assessment tax return if you’re a UK resident with foreign income or capital gains. But there’s some foreign income that’s taxed differently.

You will need to complete a tax return if you receive foreign interest, even if the amount is small or has already been taxed abroad.

You do not need to fill in a tax return if your only foreign income is dividends which will be covered by the dividend allowance (https://www.gov.uk/tax-on-dividends) and you do not have anything else to report.

Notes:
- The requirement for an SA record where there is an entitlement to reduced age allowances was withdrawn from May 2013.
- Review the following guidance before entering any amount of foreign income which is non-PAYE income IABD or setting up in SA.