Self Assessment Tax

Self Assessment Tax HMRC
HRMC Self Assessment Tax Return

Self-Assessment Tax /HMRC Self Assessment


The United Kingdom has a relatively low tax rate compared to some of its European neighbors, such as Denmark and France. The average UK citizen pays between 20% and 40% in taxes, depending on how much he earns.

If you start working in the United Kingdom, you will be required to pay the income tax. The UK income tax system follows the PAYE (Pay as You Earn) system, so the tax you pay is usually deducted from each monthly payroll.

What is Self-Assessment Tax


The idea of the self-assessment is that you are responsible for completing your tax return each year, if necessary, and for paying the taxes due for that tax year. It is your responsibility to notify HM Revenue & Customs (HMRC) if you think you need to file a tax return.

When completing a self-assessed tax return, include your taxable income and any capital gains. You will also claim the tax credits or credits you are entitled to on your tax return. Submit the form on paper or online to HMRC. The information from your tax return is used to calculate your tax due. This process is known as a self-assessment.


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How to Pay Your Taxes in the United Kingdom?

You must apply for a national insurance number (NI) (national insurance (NI) number) in the United Kingdom to work, receive a pension, use the public health service and pay taxes. It is important to request an NI number as soon as you arrive in the country, as it may take several weeks to be issued. Most employers allow you to work if you have a national insurance confirmation that your application is being processed.

Once you have found a job in the country, your employer will send your personal information, including your national insurance number, to HM Revenue & Customs (HMRC), who will apply a special tax code according to your situation and level of income. . Each tax code contains a letter that defines your tax status. E.g. "L" if you are 65 years of age or older, "NT" if you are not taxable, and so on.

The tax collected from your payroll also includes social contributions such as national insurance. Each tax collected is clearly indicated on your payroll. At the end of the fiscal year, you will be required to submit your tax return if you have any additional income to report (some state benefits, rental income, paid hobbies, etc.). Sounds complicated/time-consuming? Not for us. We do this every day for our clients. Let us handle your tax returns and sit back and relax.

Self-Assessment Tax Returns Deadlines in the United Kingdom

The Fiscal year in the UK 2021/22 starts on April 6, 2021, and ends on April 5, 2022. The January 31 of the fiscal year is January 31, 2022, which is October 5 after the end of the fiscal year. Fiscal year October 5, 2022, and January 31 after the end of the fiscal year January 31, 2023.

If you need to make payments into the account, the first payment into the account is due for the fiscal year ending April 5th. The tax year ends on April 5th and shortly thereafter everyone who has to submit a tax return will receive a notification that they have to submit a tax return for the tax year that has just ended. You may also need to file a tax return even if you haven't received one. If you need to make deposits into the account, the second deposit into the account is usually due for the fiscal year ending April 5th.


If you did not file a tax return for the previous tax year but need to file a tax return for the tax year ending April 5th, you must notify HMRC by October 5th. This could be to let HMRC know that you have any income that was untaxed before it was received, or that your capital gain is over £ 12,300. This is how HMRC can send you a tax return.

If you are filing a paper tax return with HMRC, you must submit it by October 31st. Submitting the form after that date will result in a penalty even if you don't have to pay tax. If you file your tax return online, you must file it before that date if you would like HMRC to collect tax from your tax number. This may be possible if you owe less than $ 3,000. If your income is over £ 30,000, additional taxes may be collected on your tax number.

If you cannot understand, this complicated process, we are here to help you. Please contact us and let us know your requirement and we will try to solve it ASAP.