What is Self Assessment?

Self Assessment is HMRC's system for collecting Income Tax from people whose tax cannot be fully collected through PAYE — chiefly the self-employed, company directors, landlords and those with income over £100,000. You must register, complete an online tax return each year (deadline: 31 January following the tax year end), and pay any tax owed by the same date. A further payment on account is usually required by 31 July. Failure to file on time incurs automatic £100 penalties, with additional charges for prolonged delays.