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?

It’s pretty simple. Just login to your government gateway, fill in this online form and the job’s a good’un! HMRC have put together this video to give a quick overview on the process. Take a look!

If you’ we’re working in construction (CIS), you’ll need to get in touch with HMRC separately unfortunately, so give them a ring on 0300-200-3210.

What happens if you don’t tell HMRC?

HMRC will assume you’re still self-employed and will continue sending you a tax return every year. Definitely don’t ignore it or you’ll be fined (about £1,600 if you’re a year late). Just get in touch with HMRC.

HMRC will still expect you to pay tax. They’ll 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, you do.

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
• 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 tax return
• 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)

Can TaxScouts help?

Of course! We can file your Self Assessment for you, and let HMRC know that you’ll no longer be self-employed, and confirm to them that you don’t need to submit a tax return the following year.