Ceasing self employment
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JodieR
Registered Posts: 1,002 Beyond epic contributor 🧙♂️
Can someone please clarify what someone needs to do when they cease self employment.
My thoughts are that it's not that important to notify HMRC for tax purposes as they'll pick up that information when the tax return is submitted, but it is important to notify for Class 2 NI.
I'm sure in the past they've asked for a letter from the client (ie not the agent) stating that self employment ended on x date, but now when I look at the contact pages there's only a phone number for NI ie here: http://search2.hmrc.gov.uk/kbroker/hmrc/contactus/search.ladv?sr=0&as=1&cs=ISO-8859-1&sc=hmrc&sf=&sm=0&nh=50&ha=34&tx0=49622&fl0=__dsid:&tx1=2042&raction=view but I don't want to give my client this number to ring if they're just going to ask her to send in a letter.
Anyone know the simplest way to do this?
Jodie
My thoughts are that it's not that important to notify HMRC for tax purposes as they'll pick up that information when the tax return is submitted, but it is important to notify for Class 2 NI.
I'm sure in the past they've asked for a letter from the client (ie not the agent) stating that self employment ended on x date, but now when I look at the contact pages there's only a phone number for NI ie here: http://search2.hmrc.gov.uk/kbroker/hmrc/contactus/search.ladv?sr=0&as=1&cs=ISO-8859-1&sc=hmrc&sf=&sm=0&nh=50&ha=34&tx0=49622&fl0=__dsid:&tx1=2042&raction=view but I don't want to give my client this number to ring if they're just going to ask her to send in a letter.
Anyone know the simplest way to do this?
Jodie
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Comments
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I don't know.
We've sent letters to Longbenton from us recently. Heard nothing back.0 -
http://www.hmrc.gov.uk/dealingwith/changes/close-sell-business.htm
Depends on the date of cessation. Its best to inform by letter, at least you know you have informed them.0 -
And make sure the client cancels the direct debit for class 2 NI.
That is usually the quickest way to wake Longbenton up as they then send a letter asking why the dd has stopped and even send a form you can return to say the trade has ceased.0 -
We just inform client to stop DD, a form is then sent out asking why you stopped and one of the options is ceased to trade. If you write to NICO, chances are your letter will not be dealt with!0
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And of course note it in the self-assessment form at the end of the year. Don't forget VAT, PAYE and CIS if relevant.0
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It's all so backwards isn't it? thanks for the replies!0
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