What is Self Assessment Tax?
Self-employment tax returns or self assessment tax returns use the self assessment system by HMRC to collect income tax in the UK. Tax is usually deducted automatically from wages, pensions and savings. People and businesses with other income must report it in a tax return this is normally if you are self-employed.
Your Self-Assessment is a standard tax return form. As a business owner, you’ll need to send a report of your annual earnings to HMRC. Your Self-Assessment tax return needs to include the sources of your earnings.
It’s called Self-Assessment because it is your responsibility to work out how much tax you have to pay.
When do I file my Self-Assessment tax return?
If you’re going to file your self-assessment tax return online, this will need to be done by 31 January after the end of the tax year.
If you’re not filing your return online, it needs to be done by 31 October after the end of the tax year.
The tax year runs from 6 April to 5 April of the following year.
Where do I submit my Self-Assessment tax return?
The easiest way to submit your tax reform is to use the online self-assessment HMRC login.
Remember to file your tax return after it has been filed. You need to keep records for up to 6 years prior. HMRC can issue a fine for each tax year you don’t have the correct records for.
Signing up for Self-Assessment
If you’re filing online for the first time, make sure you have your Unique Taxpayer Reference (UTR). You can find this on your HMRC registration letter. Then enrol for the online service, and activate it using the code HMRC send you in the post.
You can sign up for Self-Assessment here: https://www.gov.uk/log-in-file-self-assessment-tax-return
Information for this post was supplemented by https://www.kashflow.com/support/kb/self-assessment/