Self Assessment
[noun] /ˌsɛlf əˈsɛsmənt/.
Definition
The process of calculating and reporting your income and expenses to HRMC each year, rather than being taxed at source.
Glossary
The process of calculating and reporting your income and expenses to HRMC each year, rather than being taxed at source.
Self Assessment is the process of calculating, reporting your income and paying your taxes to HMRC each year.
When you're self-employed, you need to register with HRMC to explain that you'll be responsible for calculating and reporting your own income and tax liability, rather than being taxed at source by an employer.
Once registered, you'll be required to complete a tax return, detailing your income, expenses and tax liability each year, and then pay HMRC the appropriate amount.
This is a legal obligation, once you've made over £1000 of income that is not taxed.
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