Should I remain registered as self-employed when I become employed?

Hey there, so I'm a little confused about my options now that my personal working situation has changed. I was a freelancer (sole trader) for about 9 years, submitting my self-assessment tax return each year. I then went full-time with a company last year, but I remained registered as self-employed at first because there was still a portion of the year where I had been self-employed, and therefore I had to submit a tax return this past April. For the current tax year, I don't anticipate doing any self-employed work, so all my earnings will be taxed at source through my employer. And I don't have any other sources of income that would need to go down on a self-assessment (e.g. pension or property) Now, I want to know what I should do in terms of my self-employed status -- feedback appreciated. 1. Am I able to remain registered as self-employed and when it comes to doing my self-assessment next April, I simply put my income from self-employment down as "zero"? Is this normal, accepted practice? The reason I ask is that while I don't expect to be doing any self-employed work in the current tax year, it's nice to have the option, plus who knows, my situation might change next year or the year after and it would save me a whole lot of hassle re-registering as self-employed. 2. If I ultimately decide that I don't want the hassle of filing a tax return each April, what do I actually need to do here to "de-register" as self-employed and just have all my tax dealt with through my company's payroll?

Hi,

If you are not sure if you will do self employed work then yes you can leave the self employed record open and complete a Self Assessment at the end of each tax year.

If your self employment stops you will need to notify HMRC.

Stop being self-employed

Thank you.

Hi I am in a similar situation about to take on a part time permanent role - however I do anticipate doing some self employed work. I am happy to continue to complete self assessment tax returns. What's the simplest way of handling my tax status going forward? I would like to be clear from the outset about tax codes etc. from my new employer. I will be paying basic rate tax. Thank you.

Hi Karen Footman,
If you continue to be self employed and your gross annual turnover form self employment is over £1000.00, then you will need to continue submitting tax returns, declaring your world-wide income.
This will include your employment income.
If your self employment ceases or your gross turnover is less than £1000, a tax return may no longer be required.
Please answer the questions here:
Check if you need to send a Self Assessment tax return,
To determing if a tax return is still required.
Thank you. 

 

Hello, I have a question regarding my UTR or self-employment role. I was a self-employed from 2016 to 2024 when in March this year I started be employed (PAYE) but after 6 months I quit the job. Now my question is if I find a new job like self-employed (CIS) I need to inform HMRC for that or what are the steps? I know that if I go with PAYE again, I need to prove to my new company with P45 form. But what about if I go like a self-employed again?

Hi
Look here at registering as self employed Register as a sole trader

Hello, I'm looking to register as a sole trader but it asks for my estimated income. As yet, I have no job and no job prospects so I while I intend to find work, there's a chance I won't earn anything as a sole trader. The freelancer platform I want to sign up to requires me to be set up as a business in some format, before I can find work. Can you advise what the best course of action is for me? Also, are there any downsides I should be aware of in registering as a sole trader with my own name, rather than creating a different 'business' name? Thanks so much

Hi Alexandra,
Entering an estimate under £1000 may tell you that registering as a Sole Trader is unnecessary, as your income falls within the Trading Allowance of £1000.
If you are uncomfortable entering an estimate over £1000 to complete your registration, contact us by webchat or phone via Self Assessment: general enquiries- we can complete your registration without an estimate, and advise your further on completing your return.
Registering your business under your own name will have no advantage or disadvantage over registering under a created business name.
Thank you.