Self Assessment (UK)
Definition
The UK system through which individuals with untaxed income — the self-employed, landlords and others — report income and pay tax by filing a return each year, rather than having all tax collected at source.
Related Terms in International Tax
P60
A UK end-of-year certificate an employer gives each employee showing total pay and the tax and National Insurance deducted during the tax year. It is used to check tax and support claims and returns.
P45
A UK document an employer provides when an employee leaves, detailing pay and tax to the leaving date. The employee gives it to their next employer so that tax continues to be deducted correctly.
PAYE (UK)
Pay As You Earn, the UK system by which employers deduct income tax and National Insurance from employees' wages and pay it to HMRC, reporting in real time each pay period.
Making Tax Digital for VAT
A UK requirement for VAT-registered businesses to keep digital records and submit VAT returns through compatible software rather than manually, aimed at reducing errors and modernising tax administration.
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