Self-employment is when you are your own boss and in control of your own income and taxes. Some people are employees and also earn some income from self-employment on the side, such as selling things online. If you are ceasing to operate as a sole trader, whether you become an employee or not, generally you must contact HMRC to tell them. This guide shows you how to cancel self-employment.
Cancel by Telephone
1) Call HMRC on 0300 200 3504 to notify them that you are no longer self-employed. When it asks for the reason for your call, say “cancel self-employment” or press 1 for self-employment. Then when it asks if you are calling about yourself, say “yes” or press 1 to confirm that you are. You will then have to provide your National Insurance number to proceed. It may ask you to confirm your address and date of birth too.
2) The HMRC phone lines are often very busy, so you might have to wait on hold for a while. When you do get through to an agent and get past the security questions, you can tell them that you are cancelling your self-employed status. This could be because you are closing your own company, or becoming an employee for another employer instead. You should explain the circumstances so that they can give relevant advice.
3) HMRC will instruct you on what else you need to do in order to successfully cancel self-employment. You will still have several legal responsibilities to manage before everything is sorted out. This includes paying any business debts, cancelling VAT registration, and complete a tax return for your final period of trading. They will advise you on what to do with your business records and update a forwarding address.
The fastest and most straightforward way to cancel self-employment is to de-register online. There is an online form which allows you to do this securely. You do not need to contact HMRC any other way if you submit this form. HMRC will get in touch with you if they need to check anything or provide confirmation.
You can see all the information that you need to provide in the image above, so make sure that you have these details ready when you go to complete the form. You can find your Unique Taxpayer Reference and National Insurance number on correspondence from HMRC if you do not know them both from memory.
Cancel by Post
There is no HMRC postal address specifically for cancelling self-employment. However, even when you end self-employment, you must still submit a self-assessment tax return to cover the period of trading within the last tax year. You can do this through your online tax account. If you have any questions about this, though, then you can also send self-assessment enquiries to HMRC by post using the address below.
HM Revenue and Customs