1 Minute Guides

Introduction

The corporation tax self assessment (CTSA) system was introduced (shortly after income tax self assessment for individuals) with effect for accounting periods ended after 30 June 1999. Companies are required to file a corporation tax return (form CT600) together with supplementary pages (if appropriate) and full accounts and computations with the Inland Revenue. Deadlines apply to the filing of CTSA returns and the payment of corporation tax.

Introduction

The Inland Revenue operates the self-assessment system in the UK for individuals (and companies). Self-assessment is broadly the process by which taxpayers declare taxable income and gains on tax returns, calculate their income tax, capital gains tax and Class 4 National Insurance contributions as appropriate (although the Inland Revenue can calculate these liabilities instead) and pay their liabilities by certain dates. Many taxpayers (e.g. employees and pensioners) who pay their tax through the PAYE system on earned income, pensions and/or by deduction of tax at source on investment income do not normally require a tax return, and are therefore not within the self-assessment system. However, taxpayers who are self-employed, and those who receive their income gross, those who are higher rate taxpayers on their investment income and those who have capital gains tax liabilities, are generally liable to file tax returns and pay all or part of their tax directly to the Inland Revenue through self-assessment.

Here is a '1 Minute Guide' to self-assessment for individuals. This guide only provides a very brief, basic outline of the self-assessment system. Specific professional advice should always be taken in appropriate circumstances.