How to De Register as Self Employed

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How to Tell HMRC You Are No Longer Self Employed

Whatever your reason for needing to de register as self employed it is important you let HMRC know you are no longer self employed.  HMRC need to know that you no longer need to submit a self assessment tax return.  If they think you need to submit tax return and you fail to do so, you will face penalties.

How to De Register as Self Employed with HMRC

You can let HMRC know that you are no longer self employed online here. If you need to fill out this form then you need to know:

  • That HMRC are unable to accept a date earlier than 7 days before the date you stopped self-employment;
  • Your UTR (unique tax payers reference) Number which you can find online by looking here;
  • Your national insurance number.

What Happens Once You De Register as Self Employed

Once you de register as self employed you still have legal obligations. Even though you are no longer self employed you’ll still need to

  • complete any outstanding self assessment tax returns;
  • pay any outstanding tax you owe;
  • declare any self employment income up to the date you de register as self employed;
  • pay tax and national insurance on any self employment income up to the date you de register as self employed.

How to De Register as Self Employed – An Example

Graeme was a self employed Uber driver from 1 May 2016 to 31 August 2017. On 1 September he took a full time job as a Private Driver on a PAYE basis.  Graeme completes the form to de register as self employed on 22 September 2017.  Graeme must:

  • Complete his self assessment tax return with his income as an Uber driver during 2016/2017. This is due by 31 January 2018 along with paying any tax and national insurance due;
  • Complete a final self assessment tax return 2017/2018 with his Uber income from 6 April 2017 to 31 August 2017.  This is due by 31 January 2019 as well as paying any tax and national insurance due.
  • Graeme will need to include his earnings from his PAYE job on the final 2017/2018 tax return.  This gives HMRC a full picture of his employment status. Details of his PAYE earnings are included in the employment section of the tax return.