System of collecting tax from: Individuals i.e. the self employed and some others with a tax obligation other than under PAYE. It began for individuals on 6th April 1996. Companies in respect of accounting periods finishing after 1st July 1999. Replaces the Pay and File System.
All taxpayers are obliged by law to maintain records of all income and capital gains, and need to complete a self assessment if you are: self-employed, a company director, a business partner, an employee with 'complicated' tax affairs, such as capital gains or you pay the higher tax rate,etc
Tax system introduced in April 1996 where certain individuals are responsible for working out their own tax liability and reporting to the Inland Revenue. Those affected are typically the self-employed, partners, pensioners and company directors.
From April 1996 all taxpayers in the UK are obliged by law to maintain records of their income and all types and capital gains so as to enable annual tax returns to be completed. This is known as Self Assessment. In April each year the Inland Revenue sends out almost nine million self assessment forms to taxpayers.SequestrationThe Scottish legal term for personal bankruptcy is sequestration. This is where an individual, sole trader or partnership is formally declared bankrupt by the court (ie they cannot pay their debts) and that the debts and assets of a person should transfer to an appointed trustee.
A means of administering and collecting income tax. Usually used for self-employed workers, those with higher incomes and those with complicated financial affairs.
Each year, self employed people (and those subject to the highest rates of income tax) are required to complete their own tax return – a process known as Self Assessment. This covers income that falls outside of the ‘Pay As You Earnâ€(tm) (PAYE) system, which Self Employed people are not subject to. Once the return has been made to the Inland Revenue, the amount of tax due can be calculated and is normally paid in three instalments throughout the year.
A new style of income tax return introduced for the 1996/1997 tax year. If you are self-employed, or receive an income which is un-taxed at source, you will need to register with the Inland Revenue so that the relevant self assessment forms can be sent to you. The idea of self assessment is to allow you to calculate your own income tax. [Go to source
