UK Government, the Law and Your Role
If you are self-employed, how do you pay income tax in the UK?
AThrough the standard PAYE system used by all UK employers
BYour employer automatically deducts it under the PAYE system
CYou do not pay income tax if you are officially self-employed
DThrough self-assessment, including completing a tax return ✓
Answer & explanation
The correct answer is Through self-assessment, including completing a tax return.
If you are self-employed, you need to pay your own tax through a system called "self-assessment", which includes completing a tax return each year. Employees have tax deducted automatically via PAYE.
This is one of 767 free Life in the UK test questions on Pass the UK Test. It is taken from UK Government, the Law and Your Role and covers self-assessment, tax, self-employed. Every answer is based on the official Life in the United Kingdom handbook. Browse all questions or take a free mock test.
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