Every self-employed individual must complete an annual self-assessment tax return. When you stop being self-employed you must complete a final annual self-assessment tax return which can be done online or in paper form. When completing your self-assessment tax return you must:
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work out your trading income (ie income from your self-employment)
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add your allowable expenses (eg some costs related to closing your business, such as postage costs) - you do not need to submit proof of your expenses but you should keep records in case HMRC asks for proof at a later date
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work out your capital allowances (including any balancing charges on business equipment you sold for which you previously claimed a capital allowance)
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determine if you owe capital gains tax (CGT) on any assets (eg equipment or land) you’ve sold
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work out your final profit or loss
Due to the potential complexity of tax self-assessment, it is recommended that you get professional tax advice (eg from a chartered accountant).
The completed self-assessment tax return must be submitted to HMRC before the relevant deadline. Paper self-assessment tax returns must be received by HMRC by midnight on 31 December of the tax year. Online self-assessment tax returns must be received by midnight on 31 January of the tax year.
Note that additional requirements apply to partnerships that are ending (eg to the nominated partner submitting a final partnership tax return). For more information, read Ending a partnership.