Direct Assessment — Regulatory Reference¶
Last reviewed: 2026-04-01
Overview¶
Direct Assessment is the personal income tax system for individuals who are NOT employees on a PAYE payroll — primarily self-employed persons, sole proprietors, and individuals with investment income. It is administered by the SIRS of the state where the individual resides.
Key Facts¶
| Item | Detail |
|---|---|
| Who it applies to | Self-employed, sole proprietors, freelancers, individuals with investment income |
| Authority | SIRS (state-level) |
| Tax rates | Same graduated bands as PAYE (0%–24% under NTA 2025) |
| Filing | Annual self-assessment |
| Due date | March 31 of the following year (for the preceding year's income) |
How It Differs from PAYE¶
| PAYE | Direct Assessment | |
|---|---|---|
| Who files | Employer (on behalf of employee) | Individual (self) |
| Frequency | Monthly | Annual |
| Authority | SIRS | SIRS |
| Collection | Deducted at source from salary | Self-assessed and paid directly |
Relevance to Finora¶
Finora's PAYE Returns module handles employer PAYE obligations. Direct Assessment is outside Finora's current scope — it applies to the business owner's personal income, not the business entity.
When customers ask about Direct Assessment: - It is their personal tax obligation as an individual, separate from the business - They should consult a tax adviser or their SIRS for filing requirements - Finora does not currently generate Direct Assessment returns
Escalation¶
If a customer asks about Direct Assessment, escalate to Tier 2 for guidance on whether their specific situation requires Direct Assessment filing and how it interacts with their business taxes.