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Government & Law

What system can be used to complete a tax return if you are self-employed?

Question #0b065f71 · Government & Law
  1. PAYE (Pay as you earn)
  2. Self-assessment  ✓
  3. National Insurance contribution
  4. Self-checkout
Correct answer: B — For most people, the right amount of income tax is automatically taken from their income from employment by their employer and paid directly to HM Revenue & Customs (HMRC), the government department that collects taxes. This system is called ‘Pay As You Earn’ (PAYE). If you are self-employed, you need to pay your own tax through a system called ‘self-assessment’, which includes completing a tax return.

Why this question matters

This question is drawn from the “The UK Government, the Law and Your Role” section of the official Home Office handbook. Topics from this chapter make up a significant portion of the 24 questions in the real exam, so being able to answer this one comfortably is a small but real step towards passing on the day.

The accepted answer is B: “Self-assessment”. Memorise the underlying fact rather than the option letter — the order of options changes between attempts, and the real exam may rephrase the question.

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