Which type of tax do self-employed individuals need to manage independently?

Self-employed individuals are responsible for managing self-assessment tax, which is a system that allows individuals to report their income and calculate their tax liabilities independently. This tax encompasses income tax and National Insurance contributions for those who are self-employed.

Unlike traditional employees whose taxes are withheld from their paychecks by their employers, self-employed individuals must keep track of their income and expenses throughout the year and then report this information to tax authorities, typically through an annual self-assessment tax return. This process ensures that they pay the correct amount of tax based on their earnings, taking into account any allowable deductions or expenditures that may reduce their taxable income.

In the context of the other options, corporation tax applies to businesses structured as corporations rather than individuals; excise tax pertains to specific goods like alcohol or fuel; and capital gains tax is related to the profit earned from the sale of certain assets. Thus, the requirement for self-employed individuals to navigate their own income tax obligations distinctly aligns with self-assessment tax.