When Do You No Longer Need To Do a Self Assessment
- Adil Akhtar
- Jun 30
- 19 min read
Audio Summary of the Most Important Points:
Understanding When You Can Stop Filing a Self Assessment Tax Return
Let’s get straight to the point: you don’t need to file a Self Assessment tax return in the UK if you no longer meet HMRC’s criteria for reporting income or gains, or if HMRC explicitly cancels your filing requirement. But the devil’s in the details, and knowing exactly when you can wave goodbye to that annual tax chore requires understanding the rules, recent changes, and how they apply to your situation. In this part, we’ll break down the key triggers for Self Assessment, recent updates for the 2025/26 tax year, and who can safely stop filing without landing in hot water.
What Triggers the Need for a Self Assessment Tax Return?
None of us loves paperwork, but HMRC has specific reasons for requiring a Self Assessment tax return. If you’re wondering whether you can stop filing, you first need to know why you were filing in the first place. As of June 2025, HMRC requires a tax return if you:
Earn self-employed income over £1,gross in a tax year (6 April to 5 April).
Receive untaxed income, like rental income or dividends, above certain thresholds.
Are liable for the High Income Child Benefit Charge (income over £50,000 with child benefit claims).
Have capital gains to report, such as from selling a second home or shares.
Are a partner in a business partnership.
Have income from abroad or are non-resident with UK taxable income.
Received a notice from HMRC to file a return, even if you don’t owe tax.
For the 2025/26 tax year, if none of these apply, you might be off the hook. But here’s the kicker: even if you think you’re exempt, HMRC may still expect a return unless you formally confirm otherwise. More on that later.
What Triggers the Need for Self Assessment Deregistration in the UK?
Let’s face it, nobody enjoys dealing with tax forms, but knowing when you can deregister from Self Assessment is a game-changer. If you’re wondering whether you can stop filing, you need to understand the specific triggers that allow you to deregister with HMRC. As of June 2025, you may be able to deregister from Self Assessment if:
You’ve ceased self-employment and your income is below £1,000 in a tax year (6 April to 5 April).
Your income is now fully taxed through PAYE, with no untaxed sources like rentals or dividends.
Your dividend income falls within the £500 Dividend Allowance and requires no further reporting.
Your savings interest is below the Personal Savings Allowance (£1,000 for basic rate taxpayers, £500 for higher rate taxpayers).
You’ve sold your rental property and no longer earn rental income or have capital gains to report.
You’re no longer liable for the High Income Child Benefit Charge (income below £50,000 or no Child Benefit claims).
You’ve left a business partnership and have no other reportable income.
You’ve settled all capital gains tax liabilities and have no further gains to declare.
You’ve become non-resident with no UK taxable income.
HMRC has issued a Simple Assessment letter instead of a Self Assessment notice.
For the 2025/26 tax year, if any of these apply, you could be free from filing. But here’s the catch: you must actively notify HMRC to deregister, or they’ll assume you still need to file, which could lead to penalties. We’ll dive deeper into how to make that happen later.
How Have Income Thresholds Changed for PAYE Taxpayers?
Now, here’s some good news for employees taxed through Pay As You Earn (PAYE). In May 2023, HMRC raised the income threshold for mandatory Self Assessment from £100,000 to £150,000 for PAYE-only taxpayers, effective from the 2023/24 tax year. From the 2024/25 tax year, this threshold was scrapped entirely. This means if your income is taxed solely through PAYE (e.g., wages or pensions) and you don’t meet other Self Assessment criteria, you no longer need to file a return, regardless of how much you earn.
For example, let’s say Idris, a marketing manager in Leeds, earns £160,000 in the 2024/25 tax year, all taxed via PAYE. Previously, he’d have needed to file a Self Assessment because his income exceeded £100,000. Now, with the threshold removed, he’s free from that obligation unless he has other untaxed income, like dividends or rental income. This change simplifies life for high earners, but it’s not a free pass if you have additional income sources.
Tax Year | PAYE Income Threshold for Self Assessment | Other Criteria Requiring a Return |
2023/24 | £150,000 | Self-employment (>£1,000), untaxed income, capital gains, etc. |
2024/25 | None (threshold removed) | Same as above |
2025/26 | None | Same as above, plus MTD for Income Tax for qualifying income >£50,000 |
When Does Self-Employment No Longer Require a Tax Return?
So, you’ve hung up your self-employed boots—maybe you’ve taken a full-time job or sold your business. Can you stop filing immediately? Not quite. If you earned self-employed income over £1,000 in the tax year (e.g., 6 April 2024 to 5 April 2025), you must file a return for that year, even if you stopped trading partway through. For instance, Sian, a freelance graphic designer in Cardiff, stopped working for herself in October 2024 to join an agency. She still needs to file a 2024/25 tax return by 31 January 2026, reporting her self-employed income from April to October 2024.
However, if you’ve ceased self-employment entirely and informed HMRC, you won’t need to file for future tax years unless you have other taxable income. You must notify HMRC by completing form CWF1 (for sole traders) or contacting them directly to deregister. Be careful! Failing to notify HMRC could mean you’re still sent a notice to file, and missing that deadline triggers a £100 penalty, even if no tax is owed.
What About Untaxed Income Like Dividends or Savings?
Now, consider this: if you’re receiving untaxed income, like dividends from shares or interest from savings, you might still need to file unless HMRC can collect the tax another way. For the 2025/26 tax year, you don’t need to file if:
Your dividend income is within the £500 Dividend Allowance.
Your savings interest is below the Personal Savings Allowance (£1,000 for basic rate taxpayers, £500 for higher rate taxpayers).
HMRC can adjust your tax code to collect tax on small amounts of untaxed income via PAYE.
For example, Priya, a teacher in Bristol, earns £2,000 in dividends from her investments in 2025/26. Since this exceeds the £500 allowance, she might need to file unless HMRC adjusts her PAYE code to collect the tax. From April 2025, new rules require owner-managed business shareholders to report dividend income and shareholding percentages on the SA102 Employment Pages, increasing scrutiny.
Can HMRC Cancel Your Filing Requirement?
Here’s a scenario many overlook: even if you no longer meet Self Assessment criteria, HMRC may still send you a notice to file. Why? Because their systems don’t automatically know your circumstances have changed. You must proactively contact HMRC to request cancellation of the filing requirement. For instance, if you’ve moved from self-employment to PAYE or your untaxed income has dropped below thresholds, you can use HMRC’s online tool or call 0300 200 3300 to confirm you’re exempt.
Take Ewan, a former landlord in Glasgow who sold his rental property in 2024. He no longer has rental income but receives a notice to file for 2025/26. By contacting HMRC before the filing deadline (31 January 2026 for online returns), he can have the requirement cancelled, avoiding penalties. If HMRC agrees, any late filing penalties are automatically voided, but you must act before submitting a return.
15 Indicators It’s Time to Deregister from Self Assessment Tax Returns in the UK
Now, let’s get practical. Knowing when you can stop filing a Self Assessment tax return isn’t just about ticking boxes—it’s about spotting the signs that your financial situation no longer requires that annual slog. Whether you’re a freelancer who’s landed a steady job or a landlord who’s sold up, there are specific indicators that signal it’s time to deregister from Self Assessment. Below, I’ve outlined 15 clear signs, backed by HMRC’s rules for the 2025/26 tax year, to help you decide if you can wave goodbye to tax returns. Each indicator is paired with real-world insights and examples to make sure you’re not left guessing.
1. Have You Stopped Being Self-Employed?
So, you’ve packed in self-employment—maybe you’ve joined a company or retired. If your self-employed income for the tax year (6 April to 5 April) is below £1,000, HMRC doesn’t require a tax return. For example, Idris, our Leeds-based marketing manager from Part 1, shut down his side hustle in 2024, earning just £800 from freelance gigs. He can deregister by notifying HMRC via form CWF1, as his income falls below the Trading Allowance.
2. Is Your Income Now Fully Taxed Through PAYE?
Here’s a big one for employees: if all your income is now taxed through Pay As You Earn (PAYE), you might not need to file. Since the PAYE threshold for Self Assessment was removed in 2024/25, even high earners (like those earning over £150,000) are exempt if their income is solely from wages or pensions taxed at source. Check your payslips to confirm no untaxed income is sneaking in.
3. Are Your Dividends Below the £500 Allowance?
Now, consider this: if you’re earning dividends from shares but they’re below the £500 Dividend Allowance for 2025/26, you don’t need to file a return. Priya, our Bristol teacher, earns £400 in dividends annually. Since this is within the allowance, she can contact HMRC to deregister, provided she has no other untaxed income.
4. Is Your Savings Interest Within the Personal Savings Allowance?
None of us wants to pay tax on small savings interest, and you might not have to report it. If your interest is below £1,000 (basic rate taxpayers) or £500 (higher rate taxpayers) in 2025/26, and HMRC can collect any tax via PAYE, you’re likely exempt. For instance, Sian from Cardiff earns £300 in savings interest. She can deregister if her tax code already accounts for the tax due.
5. Have You Sold Your Rental Property?
Be careful! If you’ve sold a rental property and no longer earn rental income, you may not need to file for future tax years. Ewan, our Glasgow landlord, sold his buy-to-let in 2024. He must file a 2024/25 return to report any capital gains or final rental income, but for 2025/26, he can deregister if he has no other reportable income.
6. Are You No Longer Liable for the High Income Child Benefit Charge?
So, the question is: has your income dropped below £50,000, or have you stopped claiming Child Benefit? If either applies, you’re not liable for the High Income Child Benefit Charge, which often triggers Self Assessment. For example, Aisha, a nurse in Manchester, earned £52,000 in 2023/24 but took a pay cut to £48,000 in 2024/25. She can deregister if she has no other Self Assessment triggers.
7. Have You Ceased Being a Business Partner?
Now, if you’ve left a business partnership, you’re no longer required to file a partnership tax return. For instance, Rohan, a partner in a Birmingham café, sold his share in 2024. He files a final return for 2024/25 but can deregister for 2025/26, assuming no other taxable income requires reporting.
8. Is Your Capital Gains Tax Liability Settled?
Here’s a scenario: if you’ve reported all capital gains (e.g., from selling shares or a second home) and have no further gains to declare, you might not need to file again. Capital Gains Tax allowances for 2025/26 are £3,000 annually. If your gains are below this, or you’ve settled all liabilities, contact HMRC to confirm exemption.
9. Have You Moved Abroad and Become Non-Resident?
Now, this one’s tricky. If you’ve left the UK and are no longer tax-resident, you may not need to file a return, provided you have no UK taxable income. For example, Mei, a consultant who relocated to Canada in 2024, must file for 2024/25 if she had UK income that year but can deregister for 2025/26 if she’s fully non-resident.
10. Has HMRC Issued a Simple Assessment Instead?
Be warned: if HMRC sends you a Simple Assessment letter instead of a Self Assessment notice, you don’t need to file a return. Simple Assessments are used for straightforward tax situations, like small amounts of untaxed income. You’ll just pay the tax stated in the letter by 31 January.
11. Are You No Longer Receiving Untaxed Foreign Income?
So, if you’ve stopped earning foreign income (e.g., overseas pensions or freelance work), and your UK income is taxed via PAYE, you can deregister. For instance, Luca, a translator in London, stopped working for foreign clients in 2024. With no foreign income in 2025/26, he can contact HMRC to stop filing.
12. Have You Stopped Trading as a Limited Company Director?
Now, directors of limited companies often need to file if they receive dividends or other untaxed income. If you’ve resigned as a director and your income is now PAYE-based, you can deregister. For example, Nia, a former director in Swansea, stepped down in 2024 and now earns only a PAYE salary—she’s exempt from 2025/26.
13. Is Your Income Below the Personal Allowance?
Here’s a rare but possible case: if your total income (from all sources) is below the Personal Allowance (£12,570 for 2025/26), and you have no tax to pay, you may not need to file. This often applies to retirees or low earners with no untaxed income.
14. Have You Resolved All Outstanding Tax Issues?
Now, consider this: if you’ve settled all tax debts, penalties, or disputes with HMRC, and no longer meet Self Assessment criteria, you can deregister. For example, Tariq, a shop owner in Leicester, paid off a 2023/24 tax underpayment and stopped trading. He can deregister for 2025/26.
15. Has HMRC Confirmed You Don’t Need to File?
Finally, the golden ticket: if HMRC explicitly tells you that you no longer need to file (e.g., after reviewing your circumstances), you’re in the clear. Always get this confirmation in writing, as penalties for missing a required return start at £100, even if no tax is owed.
Step-by-Step Guide: How to Deregister from Self Assessment
Right, let’s make this actionable. If you’ve spotted one or more of these indicators, here’s how to deregister from Self Assessment:
Check Your Status: Use HMRC’s online tool at www.gov.uk/check-if-you-need-tax-return to confirm you no longer meet filing criteria.
Notify HMRC: For sole traders, complete form CWF1 online or call HMRC at 0300 200 3300. For other cases (e.g., rental income or dividends), write to HMRC or use their online contact form.
Provide Details: Include your Unique Taxpayer Reference (UTR), National Insurance number, and reasons for deregistering (e.g., ceased self-employment).
File a Final Return if Needed: If you earned reportable income in the current tax year, file a final return by 31 January (online) or 31 October (paper) for that year.
Confirm Cancellation: Request written confirmation from HMRC that you’re no longer required to file. Keep this for your records.
Monitor Your Tax Code: Ensure HMRC adjusts your PAYE code to account for any small untaxed income, avoiding future filing needs.
Indicator | Action to Deregister | Key Notes |
Stopped self-employment | Submit form CWF1 | Income must be below £1,000 for the tax year |
Income fully via PAYE | Contact HMRC to confirm | No threshold applies from 2024/25 |
Dividends <£500 | Use HMRC online tool | Ensure no other untaxed income |
No rental income | Notify HMRC in writing | File final return for disposal year |
No High Income Child Benefit Charge | Update HMRC records | Income must be <£50,000 or no Child Benefit |
How to Deregister from Self Assessment Tax Returns in the UK - A Detailed Explanation of the Step-by-Step Process
Right, you’ve figured out you might not need to file a Self Assessment tax return anymore—great news! But getting off HMRC’s radar isn’t as simple as ignoring their letters. Deregistering properly ensures you avoid penalties, keep your tax affairs tidy, and maybe even sleep a bit better. This part walks you through a detailed, step-by-step guide to deregister from Self Assessment for the 2025/26 tax year, tailored for UK taxpayers and business owners. We’ll also dive into practical tips, edge cases, and potential pitfalls, using real-world scenarios to make it crystal clear.
Why Is Deregistering from Self Assessment Important?
Let’s kick things off with a reality check: if you no longer need to file but HMRC thinks you do, you could face a £100 penalty for missing the 31 January deadline, even if you owe no tax. For example, Sian, our Cardiff graphic designer, stopped freelancing in 2024 but didn’t tell HMRC. She got a notice to file for 2025/26 and ignored it, thinking it didn’t apply. Cue a £100 fine. Deregistering proactively stops this nightmare. The process varies slightly depending on your situation (e.g., ex-self-employed, former landlord), so let’s break it down.
Step-by-Step Guide: How to Deregister from Self Assessment
Here’s your roadmap to freedom from Self Assessment. Follow these steps carefully, and you’ll be in the clear.
1. Confirm You No Longer Need to File
Before you do anything, double-check you’re exempt. Use HMRC’s online tool at www.gov.uk/check-if-you-need-tax-return to verify you don’t meet any Self Assessment criteria for 2025/26, such as self-employed income over £1,000, untaxed dividends above £500, or liability for the High Income Child Benefit Charge. For instance, Ewan, our Glasgow ex-landlord, runs the tool and confirms his sold rental property means no reportable income for 2025/26.
2. Gather Your Details
Now, you’ll need your paperwork in order. Collect your Unique Taxpayer Reference (UTR) number, National Insurance number, and details of why you’re stopping (e.g., ceased trading, income now via PAYE). If you can’t find your UTR, check old tax returns or call HMRC at 0300 200 3300. Idris, our Leeds marketing manager, digs out his UTR from his 2023/24 return to prepare for deregistration after shutting down his side hustle.
3. Notify HMRC of Your Change in Circumstances
Here’s where the action starts. How you notify HMRC depends on your situation:
Sole Traders: Complete form CWF1 online at www.gov.uk/stop-being-self-employed to tell HMRC you’ve ceased self-employment. You’ll need to specify the date you stopped trading.
Other Cases (e.g., landlords, investors): Write to HMRC at Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS, or use the online contact form via your Government Gateway account. Explain why you no longer need to file (e.g., no rental income, dividends below £500).
Phone Option: Call HMRC at 0300 200 3300, but expect longer wait times. Have your UTR and NI number ready.
For example, Priya, our Bristol teacher, writes to HMRC to confirm her £400 dividend income is below the allowance, requesting deregistration for 2025/26.
4. File a Final Tax Return if Required
Be careful! If you had reportable income in the current tax year (e.g., 2024/25), you must file a final return by 31 January 2026 (online) or 31 October 2025 (paper). This applies even if you’ve stopped self-employment or sold a property mid-year. Aisha, our Manchester nurse, files a 2024/25 return to report her final freelance income before taking a PAYE job, then requests deregistration.
5. Request Written Confirmation from HMRC
Now, don’t skip this one. Ask HMRC for written confirmation (via email or letter) that you’re no longer required to file. This protects you if HMRC mistakenly sends a notice later. You can request this when you notify them or follow up separately. Luca, our London translator, keeps his confirmation letter on file after deregistering due to no foreign income in 2025/26.
6. Check Your PAYE Tax Code
So, here’s a sneaky detail: if you have small amounts of untaxed income (e.g., savings interest below £1,000), HMRC might adjust your PAYE tax code to collect the tax instead of requiring a return. After deregistering, check your tax code via your payslip or www.gov.uk/check-income-tax-current-year. If it’s wrong, contact HMRC to avoid over- or underpaying tax. Nia, our Swansea ex-director, notices her tax code was adjusted to account for £300 in savings interest, keeping her Self Assessment-free.
7. Monitor for Future Notices
Even after deregistering, HMRC might send a notice to file if their records aren’t updated. If you receive one, don’t ignore it—contact HMRC immediately to confirm your exemption. Ignoring it risks penalties, as Sian learned the hard way. Set a reminder to check your Government Gateway account in April 2026 for any unexpected notices.
What Are the Pitfalls to Avoid When Deregistering?
Now, let’s talk about where things can go wrong. Missing a step or misunderstanding your obligations can lead to fines or unexpected tax bills. Here are key pitfalls and how to dodge them:
Failing to File a Final Return: If you had reportable income in 2024/25, file by the deadline, even if you’re deregistering for 2025/26. Late filing triggers a £100 penalty, plus £10 daily penalties after three months.
Not Notifying HMRC: Assuming HMRC will “figure it out” is risky. Always inform them of changes, like ceasing self-employment or selling a property.
Ignoring Simple Assessments: If HMRC sends a Simple Assessment letter instead of a Self Assessment notice, pay the tax stated by 31 January. No return is needed, but don’t assume you’re deregistered without confirmation.
Overlooking MTD for Income Tax: From April 2026, Making Tax Digital (MTD) requires quarterly digital updates for self-employed individuals or landlords with income over £50,000. If you’re below this threshold, you may still need to deregister from Self Assessment separately.
For instance, Rohan, our Birmingham café ex-partner, missed filing his final 2024/25 return, assuming his partnership exit automatically deregistered him. He faced a £100 fine but resolved it by contacting HMRC promptly.
What Happens After Deregistration?
So, what’s next? Once HMRC confirms you’re off the Self Assessment list, you’re free from annual returns unless your circumstances change (e.g., you start freelancing again or earn untaxed income). However, keep records for at least 22 months after the tax year ends (or five years for businesses) in case HMRC queries your final return. Tariq, our Leicester shop owner, keeps his 2024/25 records until January 2027 to stay safe.
Step | Action | Key Details |
1. Confirm Exemption | Use HMRC’s online tool | Check for income over £1,000, dividends >£500, etc. |
2. Gather Details | Find UTR, NI number | Check old returns or call HMRC |
3. Notify HMRC | Submit CWF1 or write | Specify cessation date or reason for exemption |
4. File Final Return | By 31 Jan (online) | Required if you had reportable income |
5. Request Confirmation | Ask for written proof | Protects against future penalties |
6. Check Tax Code | Verify via payslip | Ensure PAYE collects small taxes |
7. Monitor Notices | Check Government Gateway | Respond to any unexpected notices |
This step-by-step guide should give you the confidence to deregister properly and avoid HMRC’s wrath. Below, we’ll summarise the most critical points from the entire article to tie everything together.
Summary of the Most Important Points
You no longer need to file a Self Assessment tax return if you don’t meet HMRC’s criteria, such as earning self-employed income over £1,000 or having untaxed income above allowances.
The PAYE income threshold for Self Assessment was removed in 2024/25, meaning high earners taxed via PAYE are exempt unless they have other reportable income.
Ceasing self-employment requires filing a final return for the year you stopped trading and notifying HMRC via form CWF1 to deregister.
Dividends below £500 or savings interest below £1,000 (basic rate taxpayers) may not require a return if tax is collected via PAYE.
Selling a rental property means filing a final return for that tax year, but you can deregister for future years if no other criteria apply.
The High Income Child Benefit Charge only triggers Self Assessment if your income exceeds £50,000 and you claim Child Benefit.
HMRC must be notified of changes in your circumstances to cancel your filing requirement, or you risk penalties for missing deadlines.
Use HMRC’s online tool at www.gov.uk/check-if-you-need-tax-return to confirm your exemption before deregistering.
Always request written confirmation from HMRC after deregistering to protect against future penalties.
From April 2026, Making Tax Digital may require quarterly updates for income over £50,000, but you can still deregister from Self Assessment if below this threshold.
FAQs
Q1: Can you still be required to file a Self Assessment if all income is taxed at source?
A1: Yes, if HMRC issues a notice to file or if there are specific circumstances like untaxed foreign income or complex tax arrangements, a Self Assessment may still be required even if all income is taxed at source.
Q2: What happens if you miss the deadline to notify HMRC about ceasing self-employment?
A2: Missing the deadline can result in HMRC expecting a Self Assessment return, potentially leading to a £100 penalty for late filing, even if no tax is owed.
Q3: Can you deregister from Self Assessment if you’re still earning some self-employed income?
A3: If self-employed income is below £1,000 in a tax year, you can deregister using the Trading Allowance, provided there are no other reasons to file, like untaxed income or capital gains.
Q4: Does receiving a pension affect the need to file a Self Assessment?
A4: If the pension is taxed via PAYE and there’s no other reportable income, a Self Assessment is typically not required, but untaxed pensions may trigger the need to file.
Q5: Can you appeal a penalty for not filing a Self Assessment if you believe you’re exempt?
A5: Yes, you can appeal by contacting HMRC within 30 days, providing evidence that you no longer meet the filing criteria, and the penalty may be cancelled if the appeal is successful.
Q6: How does HMRC decide who receives a Simple Assessment letter instead of a Self Assessment notice?
A6: HMRC issues Simple Assessment letters for straightforward tax situations, like small amounts of untaxed income, where they calculate the tax owed without requiring a full return.
Q7: Can you deregister from Self Assessment if you’re a company director but don’t take dividends?
A7: If a company director has no dividends or other untaxed income and their salary is taxed via PAYE, they can deregister by notifying HMRC.
Q8: What should you do if HMRC sends a Self Assessment notice after you’ve deregistered?
A8: Contact HMRC immediately to confirm your exemption, providing your written confirmation of deregistration to avoid penalties.
Q9: Can you use the Trading Allowance for multiple sources of self-employed income?
A9: Yes, the £1,000 Trading Allowance can cover multiple sources of self-employed income, and if the total is below this, no Self Assessment is needed.
Q10: Does stopping Child Benefit payments automatically remove the need for Self Assessment?
A10: Stopping Child Benefit removes the High Income Child Benefit Charge, which may eliminate the need to file if there are no other Self Assessment triggers.
Q11: Can you deregister from Self Assessment if you’re still paying off a tax debt?
A11: You can deregister if you no longer meet filing criteria, but the tax debt must be managed separately, often through a payment plan with HMRC.
Q12: How does Making Tax Digital affect the need to file a Self Assessment?
A12: From April 2026, Making Tax Digital requires quarterly digital updates for income over £50,000, but you may still need to deregister from Self Assessment separately if exempt.
Q13: Can you file a Self Assessment voluntarily even if not required?
A13: Yes, you can file voluntarily to claim tax reliefs, refunds, or to report income not covered by PAYE, but it’s not mandatory if you’re exempt.
Q14: What happens to your Unique Taxpayer Reference (UTR) after deregistering?
A14: Your UTR remains linked to your tax record for future use, but you won’t need it for Self Assessment unless your circumstances change.
Q15: Can you deregister from Self Assessment if you’re a non-resident with no UK income?
A15: Yes, non-residents with no UK taxable income can deregister by informing HMRC, ensuring no UK-based income sources remain.
Q16: How long does it take HMRC to process a deregistration request?
A16: Processing typically takes a few weeks, but you should receive written confirmation, and it’s wise to follow up if you don’t hear back within a month.
Q17: Can you deregister from Self Assessment if you’re still claiming tax reliefs?
A17: If claiming reliefs like pension contributions or charitable donations requires a return, you may need to continue filing unless HMRC adjusts your tax code.
Q18: What records should you keep after deregistering from Self Assessment?
A18: Keep financial records for at least 22 months after the tax year ends for individuals, or five years for businesses, in case HMRC queries your final return.
Q19: Can you be required to file a Self Assessment for a previous tax year after deregistering?
A19: Yes, if HMRC discovers unreported income or errors from a past tax year, they can request a return, typically within four years of the tax year’s end.
Q20: Does deregistering from Self Assessment affect National Insurance contributions?
A20: Deregistering doesn’t automatically stop National Insurance contributions; you must separately notify HMRC to cease Class 2 contributions if no longer self-employed.
About The Author:
Adil Akhtar, ACMA, CGMA, CEO and Chief Accountant of Pro Tax Accountant, is an esteemed tax blog writer with over 10 years of expertise in navigating complex tax matters. For more than three years, his insightful blogs have empowered UK taxpayers with clear, actionable advice. Leading Advantax Accountants as well, Adil blends technical prowess with a passion for demystifying finance, cementing his reputation as a trusted authority in tax education.
Email: adilacma@icloud.com
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