📰 Reading: Understanding Self Assessment
In the United Kingdom, certain individuals, such as self-employed people, those receiving rental income, or those with significant investment income, are required to submit a **Self Assessment** tax return to **HMRC** (Her Majesty's Revenue and Customs). This system requires you to calculate and report your **taxable income** yourself, rather than relying on the **PAYE** (Pay As You Earn) system used by standard employees.
The UK **Tax Year** runs from 6 April to 5 April the following year. While paper returns have an earlier deadline, the typical deadline for filing your online return is **31 January** following the end of the tax year. For example, for the tax year ending 5 April 2024, the online filing deadline is 31 January 2025.
Understanding your **Tax Residency** is crucial, as this determines which country you are legally obligated to pay tax in. Failure to submit your return by the deadline will result in **automatic penalties**, usually starting at **£100**, even if you have no tax to pay. Further delays lead to escalating fines, and deliberate non-compliance can result in substantial fines and legal action for tax evasion. Ensuring all income, including any P11D benefits or Capital Gains, is declared is mandatory for compliance.
📚 Key Vocabulary
Click on each term to reveal its definition.
❓ Quiz: Concepts & Compliance
1. What is the typical online filing deadline for a Self Assessment tax return in the UK?
2. What is the primary consequence of missing the filing deadline without reasonable excuse?
3. The term 'Tax Residency' determines:
🔗 Match the Term to its Definition
Click a **Term** then click its matching **Definition**. Incorrect answers will deselect automatically.
Terms
Definition
📝 Scenario: Complete the Return
Click a word from the bank and then click a gap. **To deselect/clear, click the filled gap to return the word to the bank.**
1. The key step is identifying all your ... income.
2. Your ... status determines which country you pay tax in.
3. You must claim your personal ... to reduce your bill.
4. Late returns result in automatic ....
5. Severe non-compliance can lead to massive ....