What is Self Assessment?
Self Assessment is a system used by HM Revenue and Customs (HMRC) to collect Income Tax. While many individuals have tax automatically deducted from their wages, pensions, and savings, there are instances where tax must be reported and paid directly to HMRC. This is where Self Assessment comes into play.
Introduced in 1996, Self Assessment shifted the responsibility of determining tax liabilities from HMRC to the individual taxpayer. It's a system that requires individuals and businesses to complete a tax return every year, declaring all taxable income and claiming any reliefs or allowances.
There are various reasons why someone might need to complete a Self Assessment, including if they are self-employed, receive income from property, or have overseas income. It's essential to understand if you fall into one of these categories to ensure you meet your tax obligations.
Completing a Self Assessment can seem daunting, especially if it's your first time. However, with the right guidance and resources, the process becomes more straightforward. Explore our site for detailed guides, resources, and answers to common questions. If you need personalized assistance, don't hesitate to contact us.