Self-assessment (Individuals)

It is for income not collected at source

tax collected at source: tax payable by a seller which he collects from the buyer at the time of sale

eg of tax collected at source: PAYE

How the system works

Taxpayer is sent a notice to complete the SA (online or on paper)

There are deadlines for filing the SA (31/10 for paper and 31/1 online) or 3 months after being given notice if its later (MATCH THESE POINTS AND FIX THEM)

It covers income tax, class 2 NIC, class 4 NIC and CGT

Payment is due 31st January the following year (interim payments on account may also be required)

this date is called filing date (for both paper and online), diff. to "actual file date" (MATCH THESE POINTS AND FIX THEM)

Online filing - Tax returns submitted electronically automatically calculate the tax due

Paper filing - HMRC will (optionally) calculate it if filed by 31st October
If a taxpayer submits a paper return on time, they can ask HRMC to calculate the tax due.

When the HRMC calculate the tax they make no judgement on the accuracy of the information given to them

HMRC then deliver a statement of account to the taxpayer as a reminder of amounts due

For the tax year 2014–15, relevant deadlines will be

paper tax return

online tax return

31/10/15

31/1/16

Unless the return is issued late, the latest date that an individual can file a paper self-assessment tax return for 2013–14 is 31 October 2014