Advise HMRC if you stop being self-employed

Source: HM Revenue & Customs | | 18/12/2018

Any taxpayers that have ceased to be self-employed must advise HMRC of their change in status. There are a number of steps that must be followed if a taxpayer stops trading as a sole trader or if they are ending or leaving a business partnership. This is required so that HMRC can help to get the taxpayer's affairs in order.

Taxpayers must send in a Self Assessment return by the relevant deadline and will need to work out their trading income, allowable expenses and any Capital Allowances. Taxpayers must also determine if they have any Capital Gains Tax (CGT) to pay.

They may also be able to claim back any overpaid tax or National Insurance. It is also important to check if there is an entitlement to tax relief by way of entrepreneurs’ relief, overlap relief and / or terminal loss relief. There are also other reliefs available that may reduce the amount of CGT due

Taxpayers that owe tax or National Insurance and have difficulty paying it, may be able to negotiate an agreement with HMRC for more time to pay. In addition, where a VAT registration was in place this will also need to be cancelled and anyone who employed staff will need to close their PAYE scheme and submit final payroll reports.



 

Latest News

2020 May bank holiday will be moved to mark 75th anniversary of VE Day
19/06/2019 - More...
The government has announced that the date of next year’s early May bank holiday is to move from Monday, 4 May to

Gifts with strings attached
18/06/2019 - More...
The majority of gifts made during a person's life are not subject to tax at the time of the gift. These lifetime

The tax consequences of social events
18/06/2019 - More...
The cost of a staff party or other annual entertainment is generally allowed as a deduction for tax purposes. If you

Search News


Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login