The idea of Self Assessment is that you are responsible for completing a tax return each year if you need to, and for paying any tax due for that tax year. It is your responsibility to tell HM Revenue & Customs (HMRC) if you think you need to complete a tax return. This process is called Self Assessment.
How do I fill out a self Assessment?
Before you start, make sure you have:
- your ten-digit Unique Taxpayer Reference (UTR)
- your National Insurance number.
- details of your untaxed income from the tax year, including income from self-employment, dividends and interest on shares.
- records of any expenses relating to self-employment.
How does the self Assessment process work?
Self Assessment, put simply, is the tax return process for self-employed people. Whereas HMRC collects Income Tax from employees directly through the PAYE system, the self-employed need to work out their income and expenses and then pay their bill each January.
When can I complete self Assessment?
You have to file your Self Assessment by 31st January after the end of the tax year it applies to. Tax years run from 6th April to 5th April. You don’t have to wait, though. If you’re employed, you can submit your Self Assessment as soon as you receive your Form P60 from your employer.
What does a self assessment include?
A Self-Assessment tax return will include, amongst other things: Your P60 form, which is a summary of your income and tax deductions. Your P11D form, which covers expenses and benefits. Details of other personal income and investments. Capital gains from the sale of assets, including shares and property.
What self assessment covers?
Self Assessment is the process by which you advise HM Revenue & Customs (HMRC) of your income, gains and relevant expenses for a tax year. You currently do this by completing a tax return, sending it to HMRC and calculating your own tax liability (note the online return will do the calculation for you automatically).
How do I tell HMRC I don’t need self Assessment?
Call HMRC on 0300 200 3311 or use this online form.
Can you self-assessment yourself?
Self-assessment is simple enough to do yourself if your finances are relatively simple and you know what you are doing. However, it can be time-consuming, and you may end up paying more tax than necessary if you aren’t sure about all the expenses and allowances you can claim.
What are self Assessment payments?
Your Self Assessment tax bill is essentially a combination of balancing payments for the previous tax year and payments on account towards the next year’s tax bill.
