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.