If you have stopped trading as a sole trade or you’re ending/leaving a business partnership then you must notify the HMRC. This will trigger the cancellation of your Class 2 National Insurance.
In order to notify the HMRC of the ending of your self-employment follow the link below:
File a tax return
You are still required to file a tax return if you have had any self-employed income during the tax year- even if it hasn’t been for months. In the tax return you will need to:
· work out your trading income
· add up your allowable expenses - this may include some of the costs involved with closing down your business, eg phone, internet and postage costs of letting people know
· calculate your capital allowances, including any balancing charges if you’ve sold business equipment or machinery
· work out if you owe Capital Gains Tax on any assets you’ve sold or ‘disposed’ of
· calculate your final profit or loss
Reduce your final tax bill
There are a number of ways that you can reduce your final tax bill, such as claiming terminal loss relief.