Self Assessment Tax Returns
In the UK certain taxpayers may assess the amount of tax for which they are liable themselves.
This system is known as self-assessment, and around 8.5 million UK residents complete their taxes this way.
Under self-assessment system taxpayers include a calculation of their tax liability in their own return.
For those who do not want to make the calculation, there is the option of completing just the basic tax return, at which point HM Revenue and Customs can do the calculation and inform them of the tax that they owe.
An annual tax return has to be filed complete with self-assessment by January 31st of the following year, if this deadline is missed there is an automatic £100 fine – and the possibility of further fines the longer the form is not returned for.
If the taxpayer wishes HM Customs and Revenue to calculate their tax liabilities, they must generally submit their tax return by of the previous September 30th.
Where no tax return is issued, an individual with income or capital gains which is subject to tax, has a responsibility to notify the revenue of their chargeablility within six months of the relevant tax year (i.e.: by October 5th).