An Introduction to Tax Self-Assessment
- Price: £3.60
- Published: March 2017
- Type: Business Information Factsheet
- Format: PDF
Tax self-assessment is the method used by HM Revenue & Customs (HMRC) to collect income tax and some types of National Insurance Contributions (NICs) annually through a tax return. Anyone who has sources of income that have not been taxed under PAYE (Pay As You Earn) must complete a self-assessment return and submit it to HMRC. This normally relates to sole traders or partners who are running a business on a self-employed basis. However, some individuals with investment or rental income, and company directors must also account to HMRC under self-assessment by declaring their personal income.
This factsheet describes the tax self-assessment process, who it applies to, and how to register for self-assessment. It also briefly explains the process for paying tax and how this relates to the 'tax year'.