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Self Assessment - What is Self Assessment?

Definition: Self assessment is the completion of your own tax return each year and sending it direct to HMRC.

Before you can complete your own tax return (known as Self Assessment) you will need to register with HM Customs & Excise (HMRC). This is so they can create the correct records for you and then forward a 10 digit reference number, known as the “Unique taxpayer Reference”.

Self Assessment doesn’t necessarily apply to everyone, you may well pay all the tax that you need to pay through your tax code. But, as an example, if you are self-employed or receiving an income from abroad you will need to complete a self assessment return.

Completing the Self assessment form

The form have several sections relating to your income, whether that is through employment, interest on savings, dividends etc. and certain types of expenditure, such as charitable donations. If you are employed you will need your P60 and P11D to hand when completing this.

You can complete this online or send in a paper return. You should receive a letter from HMRC reminding you to complete your return, please make sure this is completed and returned to them by the specified date otherwise a penalty will be enforced.

For further information please check the HMRC website.