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Sam
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Category: Tax
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This question is for an expert in UK tax law. I set up as

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Hi - this question is for an expert in UK tax law. I set up as self-employed in April 2016 but then set up as a limited company in December 2016. Should I deregister as self-employed via this form: https://www.tax.service.gov.uk/shortforms/form/CeaseTrading . I pay corporation tax and I'm not paid a salary via my limited company so there isn't anything to tax via the self assessment?Thanks

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Hi

Can you advise that the self employment has in fact cased and you merely changed the legal entity of the business from sole trader to limited company? If so yes fill in the form to advise that the self employment has ceased effective from the relevant date (Dec 2016)

Then on the 2017 self assessment tax return you would have the sole trader income from April 2016 to Dec 2016 to declare as no salary drawn from the limited company from Dec 2016 to April 2017 and for 2017 self assessment you state no salary drawn so a NIL self assessment for 2017

HMRC then might be agreeable that you do not need to complete self assessment there after however if you draw dividends or a higher rate taxpayer with any other sources of income or have income that falls within the remit for self assessment then this will continue

Thanks

Sam

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Customer: replied 4 days ago.
Sorry for the delay in getting back. Just reading now.