Is Self-Assessment the Same as Self-Employed?

Self-assessment is not the same as self-employed.  But they are connected, here’s how it all works.

Updated 26 November 2020

What is Self Assessment?

Self-assessment is the term given to the system by which anyone who receives untaxed income needs to declare it to HMRC. Untaxed income can take many forms, not just self-employment such as:

Anyone who receives untaxed income needs to register with HMRC for self-assessment and file a tax return online.

How to Fill in Your Tax Return Online

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, using your tax code, and pay it over to HMRC on your behalf.

So even though self-assessment is not the same as self-employment, they are connected because self-employment is part of the self-assessment system.

About Anita Forrest

Anita Forrest is a Chartered Accountant, spreadsheet geek and money nerd helping financial DIY-ers organise their money so they can hit their goals quicker.