UK Government, the Law and Your Role
If you are self-employed, how do you pay income tax in the UK?
AYour employer automatically deducts it under the PAYE system
BThrough the standard PAYE system used by all UK employers
CThrough self-assessment, including completing a tax return ✓
DYou do not pay income tax if you are officially self-employed
Explanation
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.
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