How to Stop Self Assessment and Tell HMRC

Stopped freelancing, moved into employment or finished letting a property—but still receiving tax return reminders?

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To stop Self Assessment, tell HMRC why you no longer need to file and identify the relevant tax year. HMRC will confirm whether a return is required; submitting a request alone does not remove an existing filing obligation. HMRC’s removal guidance.

Before treating your tax affairs as complete:

Check whether any other income or circumstances still require a return.

Notify HMRC of the change and keep your submission reference.

Resolve existing notices, including any final-year return.

Review outstanding tax and advance payments.

Retain HMRC’s response and your supporting records.

Check whether you can stop Self Assessment

Your position depends on the whole tax year. Moving into PAYE employment does not automatically resolve reporting obligations from earlier self-employment or other income.

Your situation	What to check or do
You have stopped trading as a sole trader	Notify HMRC of cessation and complete the final-year return. Check whether another reason for filing remains.
You have closed a business but still receive rent	Review your rental income before asking to leave Self Assessment.
You now receive only PAYE employment or pension income	Check whether any other filing criteria apply and resolve outstanding notices.
You file only for the High Income Child Benefit Charge	Consider the specific PAYE route explained below.
HMRC has requested a return you believe is unnecessary	Ask about withdrawing that year’s notice, as well as stopping future returns.

Business partners and people with certain tax liabilities or untaxed income may still need a return. Savings interest, dividends and foreign income also need consideration. HMRC’s filing criteria.

For small amounts of self-employed income, the trading allowance may be relevant. The £1,000 limit concerns gross income before expenses, not profit. Exclusions apply, and a return may still be needed for particular claims or other income. HMRC’s trading allowance guidance.

Tell HMRC and track your application

Use the service linked from GOV.UK’s page for people who no longer need a tax return. Sign in, explain the change and specify the year concerned. Have your UTR, National Insurance number and relevant dates available.

If you cannot use the service, phone or write to HMRC. An authorised accountant requesting removal from Self Assessment must currently phone or write; agents cannot use that particular online service.

Contact HMRC promptly rather than waiting until January. Allow time for review before the applicable filing deadline.

Your personal tax account shows the date and status of your application. Keep the reference and check for updates. If another notice arrives, compare its tax year with your request and contact HMRC to establish what remains outstanding. HMRC’s application-tracking guidance.

Deregistering concerns your filing obligations. Keep access to your online account so you can check correspondence, balances and previous returns.

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Deal with an existing notice to file

Stopping future returns and withdrawing a notice for a particular year are different matters. If you believe an existing notice is unnecessary, ask HMRC to withdraw it and explain why you do not meet the Self Assessment criteria for that year.

Where HMRC agrees to an eligible withdrawal, associated late-filing penalties under Schedule 55 can also be cancelled. This is different from appealing a penalty for a return that was genuinely required.

The normal withdrawal-request period is two years from the end of the relevant tax year, unless HMRC agrees another period. Withdrawal is not available if HMRC has already received the return or a determination is in place. A determination is HMRC’s estimate of the tax due when a return has not been submitted. HMRC’s notice-withdrawal rules.

Practical adviser insight: before filing an old return solely to clear a reminder, establish whether the correct action is filing, requesting withdrawal or challenging a penalty. That decision should follow a review of the relevant year’s facts.

If you file only because of Child Benefit

You may be able to pay the High Income Child Benefit Charge through PAYE instead of completing annual returns.

If you already file solely for this charge, HMRC says to contact it by phone to leave Self Assessment and register to pay through PAYE. Use this specific route rather than assuming the general removal form completes both actions.

You must continue using Self Assessment if you need a return for another reason. Timing also matters: for the 2025/26 charge, the PAYE option is unavailable after 31 January 2027. HMRC’s Child Benefit charge guidance.

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Complete your final return and check the deadline

If you stop trading as a sole trader or leave a business partnership, HMRC requires a final tax return. Notify it of cessation without waiting for the return’s deadline.

Include the relevant trading income, allowable expenses and closing adjustments. Equipment sales, asset disposals and business losses can affect the final calculation. VAT, PAYE and CIS obligations may also need separate attention. HMRC’s business-cessation guidance.

Example: a designer stops trading on 31 December 2025 and starts employment in January 2026. The business activity still falls within 2025/26, so the final return remains necessary.

For a standard 2025/26 individual return, the deadlines are:

Obligation	Deadline
Paper return	31 October 2026
Online return	31 January 2027
Balancing tax payment	31 January 2027

Different filing deadlines can apply where HMRC issues a later notice. A request to stop filing does not itself extend your deadline. HMRC’s deadline guidance.

Naail & Co’s personal Self Assessment service can help establish what belongs in your final return.

Review payments on account and retain your records

Do not assume advance payments disappear when you stop trading. Payments on account, normally due on 31 January and 31 July, generally reflect the previous year’s liability.

If the relevant tax bill will be lower, you can request a reduction online or using form SA303. Reducing payments too far can trigger interest on the shortfall. Review the final balance and any repayment due before cancelling a payment arrangement. HMRC’s payments on account guidance.

Our payments on account guide explains how these advance payments work.

Keep self-employed business records for at least five years after the relevant 31 January submission deadline. For an on-time 2025/26 return, that means until at least the end of January 2032. Retain HMRC’s removal or withdrawal confirmation alongside them. HMRC’s record-retention guidance.

If your circumstances later change, review whether you need to re-enter Self Assessment. Previously registered taxpayers may need to reactivate their account before filing again. HMRC’s filing guidance.

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Get your final return, HMRC notices and payments resolved

You can stop unnecessary annual filing once your circumstances and HMRC’s requirements are properly aligned. The important checks are whether an existing notice remains valid, whether a final return is due and whether the account balance reflects the tax you actually owe.

Naail & Co can review your eligibility, prepare your final return, request withdrawal of unnecessary notices where appropriate, assess penalty challenges and calculate whether payments on account should be reduced.

Bring your latest HMRC correspondence and details of what changed. We can explain what needs action, what supporting information is required and the fees for any further work.

Get in touch with Naail & Co to book your free initial consultation.

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FAQs on Accountants for Startups

What does it mean to stop Self Assessment?

To stop Self Assessment means asking HMRC to remove the requirement to submit tax returns when your circumstances no longer justify it. This can reduce unnecessary annual paperwork, but it does not erase outstanding tax or automatically cancel earlier filing obligations. Ending self-employment and establishing that you no longer need any tax return are separate checks. HMRC guidance.

How does the online process to stop Self Assessment work?

You notify HMRC through its online service, explain what has changed and identify the relevant tax year. Have your Unique Taxpayer Reference, National Insurance number and relevant dates available. Keep your submission reference and check HMRC’s response before assuming you can stop filing. If you cannot use the online service, contact HMRC by phone or post. Tell HMRC.

When should I tell HMRC I want to stop Self Assessment?

Tell HMRC as soon as you establish that a return is no longer needed, allowing time for review before your filing deadline. A pending request does not automatically extend that deadline. For a standard 2025/26 individual return, the paper deadline is 31 October 2026 and the online deadline is 31 January 2027. Follow up promptly if your position remains unresolved. HMRC notification guidance, filing deadlines.

Can you stop Self Assessment when you become employed under PAYE?

Yes, potentially, if PAYE employment leaves you with no other reason to complete a tax return. Starting a salaried job does not automatically remove you from Self Assessment. Rental income, self-employed earnings earlier in the tax year, foreign income or other circumstances may still require reporting. Check the whole tax year rather than looking only at your current payslip. HMRC filing criteria.

Do I need to submit a final tax return before I stop Self Assessment?

If you stop trading as a sole trader or leave a business partnership, you normally need a final return covering the tax year in which you stopped. Notify HMRC of the cessation without waiting for that return’s deadline. Your final calculation should include relevant income, allowable expenses and any business-asset adjustments. People leaving Self Assessment for other reasons may have different requirements. HMRC cessation guidance.

How much does it cost to stop Self Assessment through an accountant?

An accountant’s fee depends on the work required, such as checking eligibility, preparing a final return, contacting HMRC or addressing penalties. Ask for a written quote explaining what is included and whether VAT applies. A straightforward notification should be distinguished from resolving several years of outstanding returns. Naail & Co offers a free initial consultation to discuss your circumstances and the support needed.

Why is HMRC still requesting returns after I applied to stop Self Assessment?

HMRC may still be reviewing your request, or the notice may relate to a year for which a return remains required. Check the application date and status in your personal tax account, then compare the notice’s tax year with your request. Contact HMRC if they do not match. Do not ignore the notice simply because you previously submitted a cessation notification. HMRC application tracking.

Is it possible to stop Self Assessment and pay the Child Benefit tax charge through PAYE?

Yes, if you qualify and the High Income Child Benefit Charge is your only reason for filing. Existing Self Assessment filers should phone HMRC to leave Self Assessment and register to pay the charge through PAYE. Other filing obligations prevent this switch. Timing matters too: after 31 January following the relevant tax year, the charge must be dealt with through Self Assessment. HMRC Child Benefit guidance.

Can I stop Self Assessment and have late-filing penalties cancelled?

Possibly, if HMRC agrees that the notice to file for the relevant year should be withdrawn. Eligible withdrawal can also cancel associated late-filing penalties; stopping future returns alone does not achieve this. Requests normally have a two-year window from the end of the relevant tax year, unless HMRC agrees otherwise. Withdrawal is unavailable where HMRC has already received the return or made a determination, so obtain advice before acting. HMRC withdrawal rules.

What happens to payments on account when I stop Self Assessment?

Review your payments on account separately rather than assuming they disappear. If your expected tax liability has fallen, you can ask HMRC to reduce the advance payments online or using form SA303. Reducing them too far can result in interest on the shortfall. Check any final balancing payment and outstanding tax before cancelling a payment arrangement. HMRC payments on account guidance.