How to Close a Self Assessment Account: The Process Explained

If you’re no longer self employed or if you’ve stopped earning untaxed income, you may need to close your Self Assessment account with HMRC. If you remain registered unnecessarily, HMRC will continue expecting tax returns, and missing them can lead to penalties.

This guide explains everything about how to close a Self Assessment account and what you should expect from HMRC during the process.

Key points

• You still need to submit a final return ✅
  Even after deregistering, HMRC usually requires a final tax return covering the period up to the date your self employment or untaxed income ended. This ensures all income is reported and any tax owed is paid.
• There are multiple ways to deregister ❌
  You can deregister online via your HMRC account, notify HMRC directly that your self employment has ended, or contact them by phone, post, or secure messaging. Make sure you have your UTR, National Insurance number, and cessation date ready.
• Deadlines and compliance still apply 📅
  Normal Self Assessment deadlines must be met for your final return, including 31 January for online submissions and 31 October for paper returns.

Why deregistration matters

Deregistering tells HMRC that your circumstances have changed. Once HMRC accepts your request, you’ll no longer be required to submit future Self Assessment returns, unless your situation changes again.

Failing to deregister can lead to:

• Automatic notices to file tax returns
• Late filing penalties, even if no tax is due
• Unnecessary administrative work
• Stress and confusion

Closing your Self Assessment account ensures your tax obligations accurately reflect your current status.

When should you close your Self Assessment account?

You should deregister from Self Assessment if you no longer have income that requires it. Here are some common situations that warrant closing your account:

1. You stopped being self employed

If you were a sole trader, freelancer, or contractor and have permanently stopped working for yourself, you should notify HMRC.

This applies if you:

• Closed your business
• Became permanently employed under PAYE
• Retired
• Changed careers and no longer earn self employed income

You should deregister only if your income is zero. If you’re still earning, even if it’s a small amount, you have to continue informing HMRC.

2. You no longer have untaxed income

You may have registered for Self Assessment because of income outside your employment, for example, the rent you receive as a landlord. If you no longer have that source of income, you no longer need to file returns.

Other examples include:

• No longer receiving freelance or side income
• No longer earning foreign income that requires reporting
• No longer receiving significant dividend income outside tax-free allowances

If all your income is taxed automatically through PAYE, Self Assessment may no longer be necessary.

3. Your income has fallen below reporting thresholds

If your income has dropped and no longer requires reporting, you can deregister.

However, you should only do this once you are certain your income will remain below reporting requirements (£1,000 or less per tax year).

Otherwise, staying registered is a far simpler option than deregistering, as it keeps your tax record continuous, reduces administrative hassle, and ensures you’re ready to file if your income fluctuates. It also avoids delays or complications when filing returns or proving your income for loans or benefits.

4. You registered by mistake

Some people register unnecessarily, especially when starting freelance work or earning small amounts of extra income.

If you registered but never became self employed, or never earned income requiring Self Assessment, you should inform HMRC.

How to close a Self Assessment account: Step-by-step

To close your Self Assessment account, you must notify HMRC that you no longer need to submit tax returns. This can usually be done online, but there are alternative options if you can’t access your account or prefer to contact HMRC directly.

Method 1: Deregister online through your HMRC account

This is the fastest and most straightforward way to deregister.

Before you begin, make sure you have the following information ready:

• Your Government Gateway user ID and password
• Your Unique Taxpayer Reference (UTR)
• Your National Insurance number
• The exact date your self employment or relevant income ended

To deregister online, follow these steps:

1. Sign in to your HMRC Personal Tax Account using your Government Gateway details.
2. Navigate to the Self Assessment section of your account.
3. Select the option to report that you have stopped being self employed or no longer need to send a tax return.
4. Enter the date your self employment ended, or the date you stopped receiving untaxed income.
5. Carefully review the information you have provided.
6. Submit the notification to HMRC.

After submission, HMRC will review your request. They may accept your deregistration immediately or contact you for clarification. In some cases, HMRC will confirm that you still have to submit a final tax return before your account can be closed.

You should keep a record of your submission confirmation.

Method 2: Contact HMRC directly

If you can’t access your online account, or if you prefer to speak to someone directly, you can contact HMRC to request deregistration.

You can do this by:

• Calling the Self Assessment helpline
• Writing to HMRC by post
• Using the secure messaging service in your Personal Tax Account

When contacting HMRC, you’ll need to confirm your identity and provide key details, including:

• Your full name
• Your address
• Your Unique Taxpayer Reference (UTR)
• Your National Insurance number
• The reason you no longer need Self Assessment
• The date your self employment or untaxed income ended

HMRC may ask additional questions to confirm that you are no longer required to file tax returns.

If you choose to write to HMRC, you should keep a copy of your letter and allow time for processing (typically 2–6 weeks).

Deadlines you need to know

Even when closing your Self Assessment account, normal tax deadlines apply.

Key deadlines include:

• 5 October: deadline to register for Self Assessment after becoming self employed
• 31 October: deadline for paper tax returns
• 31 January: deadline for online tax returns and tax payments

Your final tax return must be submitted by the relevant deadline.

What happens after you deregister

After you notify HMRC, your request will be reviewed. Deregistration isn‘t always immediate, as HMRC must ensure your tax affairs are fully up to date.

HMRC will review your circumstances

HMRC will assess the information you provided to determine whether you still need to complete a Self Assessment. They may check your previous tax returns, income history, and the reason for deregistration.

If HMRC agrees that you no longer need Self Assessment, they’ll update your record and stop issuing future notices to file tax returns.

You may still need to submit a final tax return

In most cases, you’ll still need to submit a final Self Assessment tax return covering the period up to the date you stopped being self employed or stopped receiving untaxed income.

This final return ensures that:

• All your income has been reported
• The correct amount of tax has been calculated
• Any outstanding tax has been paid

HMRC will usually send you a notice confirming whether a final return is required and when to submit it.

You must pay any outstanding tax

If your final tax return shows that you owe tax, you must pay it by the relevant deadline. This may include:

• Income Tax
• National Insurance contributions
• Any outstanding payments from previous tax years

Failing to pay on time can result in interest charges and penalties.

After you submit your final tax return and pay any tax you owe, your Self Assessment record can be fully closed.

HMRC will stop issuing notices to file returns

Once deregistration is complete, HMRC will stop sending notices requiring you to submit Self Assessment tax returns.

This means:

• You will no longer need to file annual returns
• You won’t receive late filing penalties related to Self Assessment
• Your tax obligations will be handled through PAYE, if applicable

However, you should keep your tax records for at least five years, as HMRC may request them if needed.

You can re-register in the future if needed

Deregistering now doesn’t prevent you from registering again later if required. If your circumstances change and you become self employed again, or if you start earning untaxed income, you must register for Self Assessment again.

How ANNA makes Self Assessment easier to manage – and easier to close

Closing your Self Assessment account is much easier when your records are accurate and complete. For many sole traders, this process is stressful because their finances are spread across spreadsheets, bank statements, and invoices.

ANNA is fundamentally different from traditional accounting tools. There’s no complex setup, no manual logs, and no need for an accountant. ANNA works in the background, automatically handling your finances, maintaining records, and keeping your tax position up to date.

ANNA’s key features include:

• Automatic expense capture and categorisation – Records every transaction and categorises it automatically
• Real-time tax estimates – Shows exactly how much tax you owe at any time
• Smart tax pots – Sets aside money for tax automatically
• Smart invoicing – Creates, sends, and chases invoices, with automatic payment matching
• Built-in UK business account – Manages payments, spending, and records in one place
• Automated MTD Income Tax Self Assessment support – Calculates tax and keeps records compliant
• Automated VAT returns and Company Accounts filings – Calculates and submits filings automatically
• Automated reminders – Tracks deadlines and alerts you on time

Because ANNA keeps everything accurate and up to date automatically, your final tax return is straightforward, and you can deregister from Self Assessment confidently, without stress or last-minute work.

So, try ANNA out today, and experience effortless financial management.