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Stop Being Self-Employed: Tell HMRC, File a Final Return

Short answer: GOV.UK says you must tell HMRC if you have stopped trading as a sole trader or you are ending or leaving a business partnership, and you must also send a final tax return. If you believe you no longer need to send a return at all, tell HMRC as soon as possible: HMRC needs time to review your request before the 31 January deadline, and you may have to pay a penalty if you do not tell them early enough.

Examples of no longer needing a return (GOV.UK)

You have stopped being self-employed; you no longer rent out property; you no longer pay the High Income Child Benefit Charge. You can check whether you need a return first.

How to tell HMRC

There is an online service to tell HMRC that you have stopped self-employment or that you no longer need to send a return (you must sign in; you can create details the first time). If you cannot use it you can phone or write; agents cannot use the online service. HMRC then tells you whether you still need to send a return.

The final return

If you stop trading as a sole trader or leave a partnership, you must send a Self Assessment return before the deadline. GOV.UK says that when you send it you will need to work out your trading income, add up allowable expenses (which may include some closing-down costs), calculate capital allowances including any adjustments for sold equipment, work out whether you owe Capital Gains Tax on assets you have disposed of, and calculate your final profit or loss.

Earning £1,000 or less

If you will earn £1,000 or less in the tax year, GOV.UK says you do not need to be registered as self-employed; if you decide to stop for that reason, tell HMRC after the end of the last tax year you were self-employed (for example, after 5 April 2026 if you stopped on 3 March 2026).

Reliefs to ask about

GOV.UK's stopping guidance points to Business Asset Disposal Relief, overlap relief and terminal loss relief (a loss in the last year set against profits of earlier years). Whether any applies to you depends on your facts; ask HMRC or an adviser.

Timing

GOV.UK does not set a calendar date for telling HMRC: it says to tell HMRC as soon as possible, because HMRC needs time to review your request before the 31 January deadline. For the year in which you stop (2026-27), the normal deadline would be 31 January 2028 (expected, deduced from the general rule; GOV.UK pages read do not date it).

Dates

The deadlines for the 2025-26 return are in the key dates guide. A penalty for missing them: missed deadline. If you received a penalty although you no longer needed a return, see appealing a penalty.

Example (made-up numbers)

A tutor stopped trading in August 2026. She tells HMRC straight away and files a final return for 2026-27 covering the months up to August. For the 2025-26 return she still files by 31 January 2027 as normal.

Related

Do I need to file?

FAQ

Can I just stop filing? GOV.UK says to tell HMRC; HMRC then tells you whether you need to send a return.

Is my UTR cancelled? Not covered on the pages we read.

What we could not verify

• Whether Class 2 or Class 4 National Insurance has any special handling when you stop (not read).
• A numeric deadline for telling HMRC: none is given (GOV.UK says 'as soon as possible').
• Other things to close in parallel (VAT, PAYE, Construction Industry Scheme, partnership returns): only mentioned by pointers, not covered here.
• Details of the closing-down costs that are allowable (only summarised).

Sources (official)

• GOV.UK, If you no longer need to send a tax return — https://www.gov.uk/self-assessment-tax-returns/no-longer-need-to-send-a-tax-return (read in full, 17 October 2026)
• GOV.UK, Stop being self-employed — https://www.gov.uk/stop-being-self-employed (read in full, 17 October 2026)
• GOV.UK, Help online with Self Assessment — https://www.gov.uk/guidance/help-online-for-self-assessment (search extract, 17 October 2026)
• GOV.UK, Self Assessment tax returns: Deadlines — https://www.gov.uk/self-assessment-tax-returns/deadlines (read in full, 17 October 2026)

Deadlines calendar → Penalty estimator →

Not tax advice. See the disclosure.