In essence this is a tax return document used in the United Kingdom for individuals to gives self assessment of their tax position. It can be said to be a self audit of a persons income during the financial year, and a calculation of their tax bill.
It is used by those who receive a salary but who do not pay their tax at source, meaning tax is not deducted directly from their income. Self assessment could apply to employees and also certain company directors. You must also mention in there any sales of assets and any capital gains tax you may owe.
It is operated by HM revenue & Customs and shows a individuals liability for any tax they may owe the state. Those employees who are in regular employment, for instance they have a job in the public sector and are not self-employed and who are registered under the PAYE system do not have to send in any self assessment tax return.
Nearly all Self Assessment tax returns are sent out in April of each year, they normally have to be returned by the 31st of October, however if you decide to do it online have until the 31st of January. There are always deadlines for handing in your self assessment, and a penalty as well as possible interest charges if you hand it in late.
A Pay As You Earn scheme will show the amount of income tax and also national insurance contributions that have been paid by a worker.
There are various different tax return forms for people and also companies. For instance the SA100 tax return form is completed by individuals. Then there is the CT600 tax return form which is completed by limited companies, showing their profit and loss and also any tax they owe. You should note though that companies will also have to pay corporation tax.
Trying to fill in a tax return online form can be a daunting task, thankfully there are many helpful self assessment online websites available, including ones from the Inland Revenue. There is also a paper based tax return guide that is available from HM revenue & Customs to assist you. These will give you details of any tax allowances or tax relief you are allowed to claim.