How to unregister as self employed
If you are currently self-employed but have decided to move on to a different career path or return to employment, it’s important to know the steps for unregistering as self-employed. This process will formally notify HM Revenue and Customs (HMRC) that you are no longer working for yourself and will involve completing certain forms and providing specific information.
Step 1: Inform HMRC
The first step in unregistering as self-employed is to inform HMRC of your decision. You can do this by completing a Cessation of Self-Employment form and sending it to the HMRC. This form can be obtained from the HMRC website or by contacting their helpline. It’s important to provide accurate information about your business, including the date you stopped trading and any outstanding tax liabilities.
Step 2: Update National Insurance contributions
After informing HMRC, it’s important to update your National Insurance contributions. You may be able to claim back any overpaid contributions or make additional contributions to fill any gaps in your National Insurance record. To do this, you will need to contact HMRC and inform them of your change in employment status.
Step 3: Cancel your VAT registration (if applicable)
If you were registered for VAT as part of your self-employment, you will also need to cancel your VAT registration. This can be done by completing a VAT7 form and submitting it to HMRC. The form will require information about your business and the date you stopped trading. It’s important to submit this form within 30 days of the date you stopped trading to avoid any unnecessary penalties or fees.
Step 4: Notify other relevant parties
Finally, it’s important to notify any other relevant parties of your change in employment status. This may include your clients or customers, suppliers, business partners, and any professional or industry associations you may be a member of. Notifying these parties will help ensure a smooth transition out of self-employment.
Following these steps will help ensure that you properly unregister as self-employed and fulfill your legal obligations. It’s always a good idea to seek advice from a qualified accountant or tax professional to ensure you are taking all necessary steps and making informed decisions.
Steps to unregister as self employed
If you have decided to stop working as a self-employed individual, you will need to officially unregister. Follow these steps to unregister as self employed:
- Visit the official government website or local tax authority’s website to find the appropriate form for deregistering as self-employed.
- Download or obtain the form and carefully read the instructions provided.
- Gather all the necessary documents and information required to complete the form. This may include your personal identification information, tax registration number, and any relevant financial statements.
- Fill out the form completely and accurately, ensuring that you provide all the required information.
- Double-check the form to verify that all the entered information is correct.
- Submit the completed form to the designated government office or tax authority either in person, by mail, or through an online portal, according to the instructions provided.
- Keep a copy of the submitted form for your records.
- Wait for confirmation from the government or tax authority regarding the acceptance of your application to unregister as self-employed.
- If necessary, follow up with the appropriate authorities to ensure the process is completed and any outstanding matters are resolved.
By following these steps, you can successfully unregister as self-employed and navigate the proper procedures involved in discontinuing your self-employed status.
Notify HM Revenue & Customs
Once you have made the decision to unregister as self-employed, it is important to notify HM Revenue & Customs (HMRC) as soon as possible. This will ensure that your tax affairs are up to date and you will not face any penalties.
You can notify HMRC by following these steps:
Step 1: Access HMRC’s online services
Go to HMRC’s official website, and log in to your online account. If you don’t have an account, you will need to create one. Make sure that you have all the necessary information and documents with you, as you may be asked to provide them during the process.
Step 2: Navigate to the self-employed section
Once you have logged in, navigate to the self-employed section of HMRC’s website. Look for the option to “Unregister as self-employed” or “Cease being self-employed.”
Note: This step may vary depending on the specific layout and design of HMRC’s website.
Step 3: Provide necessary information
Fill in all the required fields and provide the necessary information. You may need to enter your UTR (Unique Taxpayer Reference) number, National Insurance number, and other personal details.
Tip: Make sure to double-check all the information you provide to avoid any errors and delays.
Step 4: Submit your request
Once you have completed all the required fields, review your request and submit it to HMRC. After submitting your request, you should receive a confirmation email or notification acknowledging that your request has been received and is being processed.
Note: Make sure to keep a copy of the confirmation for your records.
By notifying HMRC of your decision to unregister as self-employed, you are taking the necessary steps to ensure that your tax obligations are fulfilled and any further responsibilities are dealt with accordingly. It is always advisable to seek professional advice or consult with a tax advisor if you have any doubts or questions during the process.
Inform other relevant government agencies
When unregistering as self-employed, it is important to inform other relevant government agencies about the change in your employment status. This will ensure that you are no longer obligated to fulfill any requirements or pay any taxes related to your self-employment.
Some of the government agencies that you may need to inform include:
| 1. | HM Revenue and Customs (HMRC): Contact HMRC to cancel your self-assessment registration and any other obligations related to self-employment taxes. |
| 2. | Department for Work and Pensions (DWP): If you were receiving any benefits or contributions as a self-employed person, you need to inform the DWP about your change in employment status. |
| 3. | Inland Revenue Department (IRD): If you are registered as a self-employed individual with the IRD, you should notify them of your unregistering as well. |
| 4. | Local council/business rates department: If you were paying business rates as a self-employed person, contact your local council to inform them about your change in employment status. |
| 5. | Health and Safety Executive (HSE): If you have any obligations or registrations with the HSE as a self-employed person, you should inform them about your change in employment. |
Make sure to provide each agency with the necessary details and documentation to confirm your deceleration as no longer being self-employed. This may include your personal identification details, tax reference number, and any other relevant documentation.
By informing these government agencies promptly, you can avoid any potential complications or penalties associated with failing to meet your obligations as a self-employed person.
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