How to Close Down My Business

chrisb1357

Hi all,

I have decided over the last few weeks to close down my business and not be self emplyoed anymore. How do i go about doing this. Do i just contact the tax office and tell them what date i am closing or is there anyone else to contact.

Chris

Horace

You contact the HMRC to say that you have ceased trading as self employed, your need to speak to them about your Class 2 NI as well. If you have insurances then you need to contact them and close your business bank account. Also, if you have customers then you need to tell them as well.

KSoni

Please call them on 0845 915 4655. Have your national insurance number and unique tax reference number handy when you call them.

pastmybest

Hi Chris

I did this last year June time.

Apart from tips already given I would warn you that, like in my case, I will still be making my final tax payment next month. Assuming you have been making enough profit to pay tax.

moneypooh

Is your business saleable? We get calls all the time from companies wanting to help us sell. May be worth a call.

Pennywise

Don't forget that one call to HMRC won't do it all. You need to contact each separate department, i.e:-

1. Your normal tax office for self assessment tax returns.
2. Longbenton for national insurance.
3. Preston(?) for tax credits.
4. VAT office if VAT registered, and
5. Local employer office if you are a limited company or have staff.

This is where people go badly wrong and get into difficulties when they think that one phone does it all. HMRC offices dealing with the different aspects don't talk to each other as a matter of routine!

Also remember that you'll still have to do all the necessary returns for the current year/period, i.e. self assessment tax return for 6/4/09 to 5/4/10, the usual year tax tax credit renewal forms, final VAT return, etc. etc. It doesn't all go away just because you've told them you've stopped.

chrisb1357

Hi,

At the start of the Business i was paying my NI but then changed to small earnings exemption and have not paid this for a few months.

I am due to sign back onto JSA with my partner for the time being so is it best to inform the tax office of the date i am ending my business or best to wait until next week.

I have allready cancled my Insurances etc

Chris

stephenni1971

I have a fairly basic knowledge of benefits but surely you cant just stop being self employed and sign on for JSA?

COOLTRIKERCHICK

stephenni1971 wrote: »

I have a fairly basic knowledge of benefits but surely you cant just stop being self employed and sign on for JSA?

this is what happened with my hubby. after 5 years of owning a shop, and he clsed it as it was not making any money, he could not claim any money as in effect he walked out/stopped his job..so he made himself unemployed

if that makes sense....

chrisb1357

Was he ever allowed to claim JSA stright after or did he have wait, Would be nice to know as i keep getting told i can.

Chris

Rolo_Tomasi

My understanding is that there are 2 types of job seekers allowance:

1. Contribution based which is only available to people who have paid class 1 national insurance over the last 2 years (ie not the self employed)
2. Income based where the amount is based on family income/savings etc.

Although the self employed can claim income based jsa as soon as they cease to become self employed it takes much longer to assess the claim than contribution based jsa - typically up to 3 months. Also, since it is based on household income, which appears to include child benefit, board paid by children, partners earnings etc then the reality is often that the self employed are not entitled to much if anything.