Income tax is a tax levied on the income of individuals on
- Earnings from Employment
- Investment Income
- Profits from Sole Trader / Partnership Business
- Rental Income
If you are an employee with earnings from your job and income from investments, which together exceed £45k (Tax Year 2016/17) or Profits from a Sole Trader/Partnership Business, a Director in a Private Limited Company there is a requirement for you to complete an annual Self Assessment Tax Return and file this with HM Revenue & Customs by 31 January following the 5 April tax year end.
Self-Assessment means you have to tell the taxman what income you have and how much tax you are due to pay.
There are penalties that could exceed a £1,000 if you do not meet this obligation.