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What do I do if I stop self employment?

Sasha Owen
Tax

How to stop being self-employed 

When you are trading as a sole trader, or you are ending or leaving a business partnership, you must:

  • Inform HM Revenue and Customs (HMRC) and deregister for self-assessment.
  • Deregister as Self-Employed Online using HMRC’s stopping self-employment form. To fill the form, you will need your UTR number and national insurance number. Remember that the deregistration form will require you to add the date you officially want to stop self-employment.
  • File a tax return for the tax year you cease self employment
  • If your self employed sales income drops below £1,000 you do not need to file a tax return

What happens if you do not notify HMRC? 

If you do not inform HMRC you have stopped being self-employed (after you have stopped trading), HMRC will continue sending you self-assessment tax returns. If you ignore these returns you will be liable for late filing penalties.

Contact us here if you need help

HMRC, self employed, Self employment, tax for self employed, tax return

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Sasha Owen
Sasha Owen BSc FCA qualified as a Chartered Accountant in 1983 and has been in practice as an accountant since 1987. If you think Sasha has the conventional image of an accountant then you couldn’t be further from reality. Sasha is a Reiki Master, loves the arts, music and theatre; having been on stage herself and worked backstage she really does have a deep understanding and love for the arts and alternative therapy world.

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