What does "self-assessment" imply in the context of taxes?

In the context of taxes, "self-assessment" means that taxpayers are responsible for calculating their own tax liabilities. This principle holds that individuals and businesses must determine how much tax they owe based on their income, deductions, credits, and applicable tax laws. It places the onus on taxpayers to accurately report their income and compute the taxes due, rather than relying solely on the tax authorities to assess their tax obligations.

Self-assessment encourages taxpayers to be informed about their financial situations and the tax system, promoting a proactive approach to tax compliance. This system not only empowers taxpayers to take control of their own financial responsibilities but also relies on their honesty and diligence in reporting all income and claiming legitimate deductions.

The other choices do not accurately reflect the meaning of self-assessment. For instance, while it is important for taxpayers to hire professionals if they need assistance, it is not a requirement under the self-assessment system. Also, taxpayers cannot choose not to report income, as all income must be disclosed to comply with tax laws. Finally, while some payment deferral options exist, self-assessment does not entail the ability to defer payments indefinitely.