How to stop being self-employed
If you want to stop being self-employed, you have to let HMRC know as soon as possible.
Otherwise they’ll still expect you to file a Self Assessment tax return.
How to tell HMRC I’m no longer self-employed?
- try calling HMRC on 0300 200 3310
- if you were working in construction (CIS), call 0300 200 3210 instead
- you can also fill out this online form
- or mention it in your Self Assessment tax return (simply tick a box).
You will need:
- your National Insurance Number
- and your UTR number – here is how to get your UTR if you lost it.
What happens if you don’t tell HMRC:
- they’ll keep sending you a tax return every year
- you can’t ignore them: you’ll be fined (about £1,600 if you’re a year late)
- HMRC will also create an “estimated tax bill” for you – it’s legally due and you can only cancel it within 3 years.
Do I still need to file a Self Assessment tax return?
What you need to include on your last Self Assessment tax return:
- your income
- your allowable expenses – although if they’re under £1,000 just claim the flat £1,000 trading allowance for the self-employed
- final profit or loss – if you made a loss you can use it to offset some of your tax bill from the previous 3 years.
What happens once you de-register
What you have to do:
- file your last (as a self-employed) tax return (see above)
- pay any income tax and National Insurance that you owe
- if you are registered for VAT, cancel your VAT registration here
- keep your documents (receipts, invoices, etc) for 6 years
- make sure that HMRC has your correct address for the 12 months after you file your tax return.
What HMRC will do:
- they will not ask you for a Self Assessment tax return next year (unless you have other reason to file one, of course)
- they will also cancel your Class 2 National Insurance contributions.
Can TaxScouts help?
- file your Self Assessment for you for a flat £119 (no other costs),
- let HMRC know that you will no longer be self-employed,
- and tell HMRC that you don’t need to submit a tax return next year.