What is Self Assessment?

[niyati]

I’ve heard about Self Assessment but I’m not sure what it actually involves. Who is required to file a Self Assessment tax return, and what kind of information do you need to include?

 

[danisjohn]

Self-assessment is the process of evaluating your own performance, skills, or progress. It helps individuals identify strengths, weaknesses, and areas for improvement. Commonly used in education, work, or tax filing, self-assessment promotes self-awareness, goal setting, and personal growth by encouraging honest reflection and accountability in various tasks or responsibilities.

 

[rajat]

Self Assessment is a system used by tax authorities, such as HMRC in the UK or the IRS in the US, where individuals and businesses are responsible for calculating and reporting their own income and taxes owed. It requires taxpayers to file annual tax returns, declare their income, claim any allowances or deductions, and pay any tax due. This system places the responsibility on the taxpayer to ensure their tax affairs are accurate and up to date, with penalties for late or incorrect filings.