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Self Assessment is a system used by HMRC to collect Income Tax. Individuals with undeclared income are usually required to submit a Self Assessment tax return.
Self Assessment is a method HMRC uses to collect Income Tax in certain circumstances.
Employees have taxes automatically deducted from their wages through the PAYE system. However, individuals and businesses are required to report their income through a tax return.
Self-employed individuals who earned more than £1000, partners in a business Partnership, Employees who earned £100,000 or more, and individuals with untaxed income are all required to submit a Self Assessment. A Self Assessment might also be filed to claim tax reliefs or allowances.
Individuals must register with HMRC by 5th October following the end of the Tax Year. Once registered, a tax return must be submitted every year until HMRC is told otherwise. Individuals must then complete and file their Self-Assessment. This can be done online by themselves, filling in a paper copy themselves, by hiring an Accountant or using a service like Earnr provides.
The tax bill must be paid by 31st January when submitting online, the year following the end of the Tax Year you are paying for. The deadline for paper returns is 31st October following the end of the Tax Year.
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