Ceasing Trading - Sole Trader

[SST]

Due to a recent bad debt and other things i've decided to stop trading as a sole trader, and return to full time employment.

I've no business debts, and a zero business bank balance, I do have a small cash balance.

I have tools bought through the business last year, shelivng etc, no vehicle or materials.

I have an outstanding invoice owed to me that im pursuing through small claims, (see my other thread).

How do I go about closing the business, who do I need to tell etc, and what if any forms do I need to fill in.

Thanks

[MyAccountantOnline]

Due to a recent bad debt and other things i've decided to stop trading as a sole trader, and return to full time employment.

I've no business debts, and a zero business bank balance, I do have a small cash balance.

I have tools bought through the business last year, shelivng etc, no vehicle or materials.

I have an outstanding invoice owed to me that im pursuing through small claims, (see my other thread).

How do I go about closing the business, who do I need to tell etc, and what if any forms do I need to fill in.

Thanks

If you have an accountant acting for you - they should deal with everything for you.

If not you will need to prepare your final accounts to the date you ceased and report the figures on your tax return, where you will also note the date you ceased trading. No special forms are needed.

Unless you are VAT registered that is the only notification you will need to make to HM Revenue & Customs.

[SST]

Thanks,

Im not VAT registered, will I need to buy the tools etc from the company?

[MyAccountantOnline]

Thanks,

Im not VAT registered, will I need to buy the tools etc from the company?


No - as a sole trader you dont buy them from yourself but you need to make sure your capital allowances are correct at the cessation of trade.

If you dont have an accountant acting for you and are doing this yourself have a look on HMRC website and hopefully you'll find some guidance.

[Davem1234]

Don't forget to notify the National Insurance Contributions Office you have ceased so that you don't have to pay any more class 2 national insurance (£2.40 per week).

If you currently pay it by direct debit, remember to cancel this also with your bank.