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?

There are a few ways you can go about it:

• Call HMRC on 0300 200 3310
• If you were working in construction (CIS), call 0300 200 3210
• Fill out this online form
• Mention it in your Self Assessment tax return (simply tick a box)

You will need:

• Your National Insurance Number
• Your UTR number – here is how to get your UTR (if you’ve lost it)

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)
• They will also cancel your Class 2 National Insurance contributions

Can TaxScouts help?

Of course! We can file your Self Assessment for you for a flat £149, 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.