HMRC is the department of the UK Government that’s in charge of collecting taxes and also a few other things (for example, making sure employers pay the national minimum wage).
You have to pay your taxes to HMRC every year. How you do this depends mainly on how you earned money:
- if you are employed, your employer will take care of your taxes for you – but only for your salary
- if you are not employed or are employed but have other untaxed income, you need to file a personal tax return (also called a “Self Assessment tax return”).
It’s important to remember that once you register for Self Assessment, you need to file one every year until you tell HMRC to deregister you. They’ll still expect one otherwise.
If you need to file a tax return but don’t, HMRC will fine you. The deadline to submit a Self Assessment is 31st January of the year following the one you earned money in.
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