Self Assessment

shutterstock_70204669-character-w-questionsSelf Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.

Tax is usually deducted automatically from wages, pensions and savings. People and businesses with other income must report it in a tax return.

Self assessment is HM Revenue & Customs way of collecting all the income that an individual will receive during the financial year (year to 5th April). This income may come from various sources and allows HMRC to calculate the amount of tax due for the individual tax payer.

Self assessment may require preparation of accounts if your are self employed or operating as a landlord renting out properties.

HMRC have reviewed landlord accounts and have made changes to the expenses that can be claimed.

All Self Assessment Tax Returns, if filed on line, must be submitted by 31st January. This is also the date that any outstanding Income Tax must be paid.

There are changes that will take effect from 6th April 2016 that may impact on the tax liability for 2016/17.

If you are confused by it all and need to talk to a professional then get in touch with CAW Accountancy.