How to Tell HMRC You Are No Longer Self Employed

If you are stopping self employment, for whatever reason, you must let HMRC know so they understand that they should not receive tax returns from you.

You can let HMRC know that you have stopped being self employed online here.

You should note however that your obligations do not immediately disappear.  You will still be required to complete any outstanding self assessment tax returns, as well as completing a final tax return to declare any self employment earnings in the current tax year.

Example:

Graeme was a self employed Uber driver from 1 May 2016 to 31 August 2017 and took a full time job as a Private Driver on a PAYE basis.  Graeme completes the form on 22 September 2017 to let HMRC know he is no longer a self employed Uber driver.  Graeme still has the following obligations:

  • He must complete his self assessment tax return detailing his earnings as an Uber driver covering the tax year 2016/2017** by 31 January 2018, along with paying any tax and national insurance due;
  • He must complete a final self assessment tax return detailing his earnings from Uber from 6 April 2017 to 31 August 2017 by 31 January 2019 as well as paying any tax and national insurance due. Graeme will also need to include details of his earnings in his new job as detailed on his payslips to present a full picture of his earnings in this final Self Assessment tax return.

**a tax year runs from 6 April to 5 April

Related:

Allowable Business Expenses for the Self Employed

Am I Allowed to Do Freelance Work While I am Employed?

HMRC Tool To Check If You Need to File a Tax Return

Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.