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?

Two ways:

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?

Yes.

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?

Definitely.

We can:

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.

How TaxScouts works

1. Simple online tax assessment

Our online tax-bot will go over your tax situation and will make sure you won’t overpay your taxes.

2. Chat to human advisors

You can talk to one of our tax assistants at any time during the process when you have any questions.

3. We’ll sort your documents online

We’ll tell you exactly what documents you need and sort them for you online. You just upload them or snap a picture with your phone.

4. Everything gets prepared for you

Your certified accountant will go over your details & prepare your tax return for you to review. It will be filed on your behalf once you approve it.

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Who our service is for

First time tax filers

We have a simple online service that guides you through the entire process. Regardless of your reasons for doing your tax return we'll help you get it done right.

Construction workers

We'll prepare your self assessment and help to maximise your CIS tax refund. We have the lowest fees in the industry and you don't have to pay up front if you're eligible for a refund.

People living overseas

Our service allows people living abroad to prepare their income tax return online. We are able to process all returns regardless of your current country of residence.

Company directors

UK company directors are required to file their self assessment annually. TaxScouts handles this through a simple online process.

Landlords

Long Lets, Airbnb, Capital Gains. TaxScouts will sort out your self assessment and take away the worry of tracking all the recent tax changes.

Self-employed

TaxScouts ensures the self employed don't overpay on their taxes. We'll help you benefit from all the tax breaks and deductions that can be applied to your return.

And for everyone else who needs to do their self assessment

At TaxScouts we appreciate that tax returns are highly individual. Before you get assigned an accountant we make sure to understand your circumstances and help you build your optimal tax profile.