It is important that taxpayers follow the correct steps if they stop trading or close their business. Taxpayers that owe tax or National Insurance, and have difficulty making payment, may be able to negotiate an agreement with HMRC for more time to pay.
There are also certain circumstances when taxpayers may be able to claim back tax or National Insurance overpaid.
HMRC guidance on the subject includes the following main sections:
- How to tell HMRC and finalise your tax
- What you can claim for tax and National Insurance
- Getting someone to act on your behalf
- What to do if you have problems paying HMRC
There is an email notification facility for taxpayers that have ceased to be self-employed to inform HMRC of their change in status.