Ending self employment

catwoman

Can someone tell me how I go about ending my self employment. Who and when do I inform them that I am no longer in business?

Pennywise

I presume you are a sole trader and not a limited company and have answered the question on that basis.

You need to tell the HM Revenue & Customs people at Newcastle (Longbenton) so that your class 2 NICs can be stopped (those at £2.10 per week).

You need to tell your local tax office (the one to whom you send your self assessment tax returns) so that their records are up to date - they'll do nothing at the moment and send you the self assessment tax return for year ended 5 April 2007, next year, where you can declare your final period trading figures and all other declarables for that full year, (employment, interest etc).

If you are claiming tax credits, you need to tell the tax credits office.

If you are VAT registered, you need to de-register. Easiest thing is to phone their enquiry line and ask for the dereg forms - they'll also tell you about whether you have to repay vat claimed on your equipment and stocks still in hand.

If you employ people, you'll have to tell HMRC office that deals with your payroll and do P45s for everyone and eventually you'll have to complete the end of year return.

Think about any subscriptions, insurances, etc that you have paid in advance for. In some cases, you can claim a refund if you don't need them anymore.

Think about any recurring expenses you have, e.g. advertising, directories, webhosting, internet, etc., to make sure they are cancelled before they become due again.

Obviously, if you have any business bank accounts, loans, credit cards, etc., you need to tell the bank so that they can be paid off and cancelled.

As for income tax, you may find that you can reduce your payments on account for 2006/7 (payable Jan and Jul 07) as your business profits will be far less due to trading fewer months in the tax year. To do this, you need to do final accounts and do a rough calculation of your 2006/7 tax liabilities.

That's all I can think of at the moment.

catwoman

Thank you, thats a great help.

Chris6000

Hello

Please can you tell me when ending self-employment and starting employment again what paperwork instead of a P45 do you give to your new company?

Thank you!

toby_puppy

Chris6000 wrote: »

Hello

Please can you tell me when ending self-employment and starting employment again what paperwork instead of a P45 do you give to your new company?

Thank you!

Your new employer will just ask you to fill in and sign a form P46.

skyjumper

and what about if this was a Limited Company Set up and wanted to stop trading. what would be the code of practice?