Who do you tell when you stop being self-employed?

sixteenthofjune · 1 February 2009 at 9:07PM

Hi, I was self-employed but am now not. Is there some set procedure for 'un-registering' as self-employed? Or do I just keep on filling in self-assessment returns saying I have no tax to pay forever?

Thanks

Lobby_Lud · 1 February 2009 at 9:18PM

As soon as you are no longer SE, call the NIC phone line to inform them. They will stop your quarterly NIC bill. They'll send you a final bill and that's that once you've paid.
On your tax return there will be a box for you to fill in a date when your SE came to an end.
After you've paid your next SE tax bill you'll be done.
I assume you are PAYE now?

Tax office told me this -
When you fill in your P46 for your new PAYE job, you will have an option to tick that you've NOT had a job until now OR that you HAVE had a job. (in the current tax year)

If you've earned over your personal allowance in the current tax year you'd be best ticking that you HAD a job up until the change over. That way you will pay your tax straight away on your new PAYE job (eg. 20% rate) and won't get behind with paying tax.

If you've earned very little or less than your personal allowance, tick that you haven't had a job in the current year (even though you did!). You can then use your full personal allowance in the current tax year.

When you fill in your final tax return, you will declare both SE and PAYE. You may pay a little more tax in one go, but you would at least get your full personal allowance for the year. Make sure you budget for that option if you do it.

I opted to start paying PAYE tax straight away as I'd earned well over my personal allowance, so it made sense to do so. I didn't want a big tax bill later on.

Just_landed · 1 February 2009 at 9:23PM

sixteenthofjune wrote: »

Hi, I was self-employed but am now not. Is there some set procedure for 'un-registering' as self-employed? Or do I just keep on filling in self-assessment returns saying I have no tax to pay forever?

Thanks

From what happened to me I would go down to your local TAX office in person make an appointment with them and give the the dates you ceased trading, then they can calculate what is owed to them. My accountant should of done all mine, what I owed he did but did not inform them I ceased being self employed but there again how did he know that.

sixteenthofjune · 1 February 2009 at 9:31PM

Yes, I am PAYE now. So, I sort out the income tax side of it on the SA form, and the NI contributions by phoning their helpline?

Thanks for the advice

Lobby_Lud · 1 February 2009 at 9:34PM

see my additions above! I edited just as you posted

sixteenthofjune · 1 February 2009 at 9:42PM

:-) Thanks Lobby!

Pennywise · 2 February 2009 at 3:13PM

Just remember that tax offices don't talk to eachother. You need to contact each separate HMRC office for:-

NIC (Newcastle)
Income tax (your local tax office)
Tax credits (usually Preston)
VAT if registered (Wolverhampton)
PAYE (if any employees) - regional PAYE office

Just phoning one and expecting (as would be logical) all systems to be updated just won't work.

kitty1801 · 2 February 2009 at 9:16PM

Hi

Just to clear this up - your local tax office will not make an appointment for this. They will put you on the phone to your own tax office who will then record the date your self employment stopped on their records.

Just_landed wrote: »

From what happened to me I would go down to your local TAX office in person make an appointment with them and give the the dates you ceased trading, then they can calculate what is owed to them. My accountant should of done all mine, what I owed he did but did not inform them I ceased being self employed but there again how did he know that.

Who do you tell when you stop being self-employed?

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