Self Assessment is how personal tax returns are done in the UK. It means that, if you have any untaxed earnings (for example, from self-employment, rent, selling a property, etc.), you assess it and declare it to HMRC yourself.
You also have to calculate how much tax you need to pay.
A few things to remember about Self Assessment:
- the usual reasons to do a Self Assessment is either paying tax on earnings outside employment or claiming a tax rebate
- you might need to do a Self Assessment even if your only income is from employment (and your employer already takes care of your taxes). For example, if you earn over £100,000 or if you want to claim a tax relief
- once you register for Self Assessment, you have to submit one every year until you tell HMRC that you don’t need to do one anymore. Otherwise you’ll be fined
- starting from April 6th 2020, if you sell a property for a profit, you have to use the Real Time Capital Gains Tax Service instead of Self Assessment.
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