Self employed and stopping

neil324

I'm registered self employed but un-employed(not claiming benifit). When i receive my tax return in April i'm going to de-register as self employed. Do you have to only fill in the date when your business ceased and then never to receive another tax return.

I never worked last year so will be infact claiming a tax rebate on interest paid on savings accounts. I'm concerned with the recent news headlines of more investigations into tax returns and the fact that mine will be showing zero work. Although i did receive £2750 in a compensations pay out and earned £6500 interest. Would it be wise to make a reference in the additional notes thats what i lived off?

fengirl_2

If you are paying your class 2 NIC's by DD, you need to inform HMRC now so that this can stop.
You will need to show nil income from self employment and also the date it ceased.
I would always give as little information as possible in the free hand space on the self assessment - just declare the income and let them ask you if they have queries.

Treading_Water

I would be inclined to put a note in the white space stating that self employment has ceased and when.

Ballymackeonan

Even if you tell the Revenue that you have ceased trading as self-employed, you may continue to get tax returns for a while, I've seen this in a number of cases where people have stopped self-employment, although their income was below the personal tax allowance.

DreamweaverB

neil324 wrote: »

I'm concerned with the recent news headlines of more investigations into tax returns and the fact that mine will be showing zero work. Although i did receive £2750 in a compensations pay out and earned £6500 interest.

I'd add that tax investigations are nothing to be worried about unless you have something to hide.

There is a specific section on your tax return where you enter interest earned so no need to mention that in the notes. Presumably you also used up some of your savings to live on as £9250 doesn't get you very far these days!

neil324

DreamweaverB wrote: »

I'd add that tax investigations are nothing to be worried about unless you have something to hide.

There is a specific section on your tax return where you enter interest earned so no need to mention that in the notes. Presumably you also used up some of your savings to live on as £9250 doesn't get you very far these days!

Not sure what your point is.But £9250 a year is more than the minimum wage.

Thanks for the other comments, i will just add to the notes that i have stopped self-employment to make sure.

DreamweaverB

You mentioned that you were concerned about an investigation so I was making a serious point that even if you are investigated there's nothing to be worried about.

Tax investigations are not the scary matters that some people think. Tax inspectors have one job, to make you sure you pay the correct tax, no more and no less.

If you are investigated then in the first instance all they ask for is more information on say your outgoings in your case. (I've been through the process and although it was expensive as I hadn't paid enough tax for a number of years it wasn't the nightmare I was initially expecting.)

Sorry I thought minimum wage was around £12k which is why I commented £9250 didn't sound very much, must be paying some of my staff too much!

harryhound

Why do you want to drop out of self employment?
If you still need the "stamps" for future pension reasons (unlikely with the prospect of 30 years becoming the standard) the self employment class NICS are cheaper than the voluntary ones?
If your future prospects are minimal you can always ask for exemption from paying NICS but still be "self employed".
If something does come up, you will be ready to go as a small trader, without having to start up again?

What are you doing with yourself all day?

neil324

DreamweaverB wrote: »

You mentioned that you were concerned about an investigation so I was making a serious point that even if you are investigated there's nothing to be worried about.

Tax investigations are not the scary matters that some people think. Tax inspectors have one job, to make you sure you pay the correct tax, no more and no less.

If you are investigated then in the first instance all they ask for is more information on say your outgoings in your case. (I've been through the process and although it was expensive as I hadn't paid enough tax for a number of years it wasn't the nightmare I was initially expecting.)

Sorry I thought minimum wage was around £12k which is why I commented £9250 didn't sound very much, must be paying some of my staff too much!

£11,190 then take out your tax and NI.

neil324

harryhound wrote: »

Why do you want to drop out of self employment?
If you still need the "stamps" for future pension reasons (unlikely with the prospect of 30 years becoming the standard) the self employment class NICS are cheaper than the voluntary ones?
If your future prospects are minimal you can always ask for exemption from paying NICS but still be "self employed".
If something does come up, you will be ready to go as a small trader, without having to start up again?

What are you doing with yourself all day?

To be honest the state pension when i reach it will be worth nothing im only 37 and i believe the retirement age for men is 67, thats more likely to be 70 for me.

What an i doing with myself all day. Well i was just in Thailand for 3 months topping up my tan. Here i tend to be in the gym 6 days a week and relaxing. Unfortanly there isn't any call for bricklayers at the moment and work like the olympics is being built by foreign workers while british workers watch them from the dole offices.

harryhound

Still time to drop back in and rack up your 30 years of service to our glorious country.:rolleyes: