Stop being self-employed
4 tasks in suggested order
1. Tell HMRC you stopped being a sole trader and complete your final Self Assessment
If you stop trading as a sole trader, tell HMRC that you have stopped being self-employed and complete the final Self Assessment obligations for the business.
When the sole-trader business stops trading; complete the final tax return for the relevant tax year by the normal Self Assessment deadline.
HMRC through the official stop-being-self-employed/Self Assessment route.
National Insurance number, UTR, cessation date, business records and final income/expense figures.
Stopping trading does not cancel the final tax return or record-retention duties. VAT, PAYE and CIS have separate closure steps if they apply to you.
Official source: GOV.UK
2. Cancel your VAT registration if the business is VAT-registered and no longer needs it
If applicable: If you are VAT-registered and the registration should end.
A VAT-registered business that stops trading normally needs to cancel its VAT registration and deal with the final VAT return/accounting required by HMRC.
When the business stops making taxable supplies or another compulsory-cancellation reason applies.
HMRC VAT cancellation service.
VAT registration details, effective cessation date and the information needed for the final VAT return.
This step only applies if you are VAT-registered. Do not cancel VAT solely because you stopped one activity if the registration still applies to another taxable business activity.
Official source: GOV.UK
3. Close PAYE and send the final payroll reports if you stop employing staff
If applicable: If you employed staff through PAYE and are ending the employer scheme.
If the business stops employing people, HMRC requires the employer PAYE scheme to be closed through the final payroll process and the final reports/payments to be completed.
When the final employee leaves and the business will no longer run PAYE.
HMRC PAYE/payroll service.
PAYE reference, final pay dates, employee leaving details and final payroll figures.
This step is only for employers. Closing self-employment does not by itself tell HMRC that PAYE has ended.
Official source: GOV.UK
4. Tell HMRC if your Construction Industry Scheme registration must end
If applicable: If you are registered under the Construction Industry Scheme.
If you were registered as a CIS contractor or subcontractor and the construction activity is ending, follow HMRC’s CIS closure/contact route.
As soon as the CIS activity ends and the registration is no longer needed.
HMRC Construction Industry Scheme contact route.
UTR, CIS/employer references where relevant and the date the construction activity ended.
Only use this step if CIS applies to the business. HMRC specifically tells CIS contractors/subcontractors to contact the CIS helpline when they stop trading.
Official source: GOV.UK
