Self Assessment is a system HM Revenue and Customs uses to collect Income Tax.
Tax is usually deducted automatically from wages, pensions and savings. Individuals, Sole Traders or Businesses with other income must report it in a Self Assessment Tax Return.
The deadline to submit your self assessment tax return and pay your tax bill for the year is the 31 January. Unfortunately, not submitting your tax return on time, could result in considerable penalties and interest being accrued by HMRC. This is why it’s so important to put arrangements in place early on to ensure everything is completed on time.
Another huge benefit to being organised with your tax affairs is that you will know how much tax is due in advance with a good amount of time to pay your balance to HMRC.