Freelance vs Fulltime employment

Speedster_2

Hi there,

I am a Copywriter and I have recently been freelancing under my own company name. In order to avoid financial confusion I decided to ask an Accountancy body called 'Crunch' to deal with all my invoices etc for £60 a month.

In the last month or so I've started a full time job and so my billable freelance time has reduced dramatically. While I shall still complete the occasional job, it won't be on a regular basis due to time constraints.

I don't really wish to continue to pay the £60 subscription fee to Crunch every month, but wondered if someone could give me some advice on how to go about closing down my business? Or is there a way I can make it dormant in case I decide the job isn't for me?

Do I just need to contact HMRC?

Thanks in advance
Claire.

fengirl_2

If you are a sole trader, then you just need to inform HMRC that you have ceased to trade and make sure you cancel your DD for your class 2 NIC. You will still have to self assess for this year, including your final accounts details on the return. However, if you are continuing your freelance work even though its on a reduced basis, your business has not ceased and the two jobs will run side by side.
If you have a limited company, again you need to close it and do final accounts, also closing your PAYE scheme. But if the income is continuing, then the company remains open.