How do I deregister as self-employed with HMRC?
Answered 11 March 2026
Deregistering as Self-Employed with HMRC
What the law says
You are legally required to notify HMRC when you cease to be a self-employed earner. Under the Social Security (Contributions) Regulations 2001 (SI 2001 No. 1004), contributors must notify HMRC if they cease to be a self-employed earner from 6 April 2015 onwards.
Failure to notify HMRC of cessation, where you fall within the Self Assessment regime, can result in notification penalties under Self Assessment.
HMRC Guidance / Practice
There are two key steps when deregistering as self-employed:
1. Notify HMRC that you have ceased trading
If you are registered for Self Assessment but have ceased trading, HMRC's own correspondence confirms you should:
"Call the Self-Assessment helpline on 0300 200 3310 so we can update our records."
2. Register/notify via the appropriate route
When you originally registered as self-employed, this was done via form CWF1 (either online or on paper). The cessation of self-employment should similarly be communicated to HMRC so that your Self Assessment record and Class 2 NIC record can be updated accordingly.
HMRC systems can also update a Self Assessment record automatically when Class 2 NIC cessation information is received — an SA note will be added showing "Trade/Partnership source(s) ceased on receipt of Class 2 NIC cessation information".
Summary of Steps
| Step | Action |
|---|---|
| 1 | Call the Self Assessment helpline on 0300 200 3310 to notify HMRC you have ceased trading and ask them to update your records |
| 2 | File your final Self Assessment tax return, including the cessation date on the self-employment pages |
| 3 | Ensure your Class 2 NIC record is updated to reflect the date you stopped being self-employed |
⚠️ Important: Do not simply stop filing returns without notifying HMRC. Failure to notify can result in penalties.
Citation sources
The customer ceased paying Class 2 National Insurance Contributions on 30 September 2011 (tax year 2011-2012). The annual feed from NPS in early 2013 (tax year 2012-2013) would include this case and SA would be updated to reflect the date of cessation of 30 September 2011 against all live trade (and partnership) sources. An SA Note will be added to the SA record showing ‘Trade/Partnership sources(s) ceased on receipt of Class 2 NIC cessation information’. Note: It is possible that an update has
tructions. 12. On 5 November 2021, a letter was sent by HMRC to Mr Cotton as part of a compliance campaign. The “one-to-many” letter was issued to all SEISS claimants who did not declare the trading income within their 2019/20 SATR. The letter stated: “Our records show that you claimed a Self-Employment Income Support Scheme (SEISS) grant. As part of the claim process, you told us you were trading as Self-Employed or in a Partnership when you claimed the grant. This letter relates to the first,
When an individual becomes self employed, they must register with HMRC for National Insurance Contributions (NIC) and tax purposes. Other than by completing form CWF1 themselves, they can do this by Calling the Self Employed Registration helpline Registering online via KANA or the Online Tax Registration Service (OTRS) The Central Authorisation Team (CAAT) process paper forms CWF1 manually for HMRC. From October 2014, registrations received online using the KANA or OTRS methods are dealt with au
The above regulations require contributors to immediately notify HMRC if they became, or ceased to be, liable or entitled to pay Class 2 NICs on or before 5 April 2009. immediately notify HMRC if they became, or ceased to be, liable or entitled to pay Class 2 NICs during the period 6 April 2009 to 5 April 2015. notify HMRC if they commence, or cease, to be a self-employed earner from 6 April 2015. Self-employed earners who fall within the Self Assessment regime and who fail to notify HMRC will b