Self-assessment is not the same as self-employed. But they are connected.
What is Self Assessment
Self-assessment is the term given to the system by which anyone who receives untaxed income
Untaxed income can take many forms, not just self-employment such as:
- Rental income
- Sale of properties
Anyone who receives untaxed income needs to register with HMRC for self-assessment and file a tax return.
Self-Assessment and the Self-Employed
When you are self-employed the money you get paid is untaxed and you need to declare this on a self-assessment tax return.
It’s unlike when you are employed and it is your employers’ responsibility to deduct tax on your behalf and pay it over to HMRC on your behalf.
So even though self-assessment is not the same as self-employed, they are connected because self-employment is part of the self-assessment system.
She is the creator of the ‘Go Self Employed’ website, which is her corner on the internet where she makes self-employment less terrifying.
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