What must I do when I stop trading as a sole trader?

Tell HMRC that you have stopped self-employment, complete the required final tax reporting and review any VAT or employer registrations. Stopping sales does not automatically close every obligation. Keep records of the cessation date, outstanding transactions and remaining assets.

These answers provide general information, not advice tailored to your circumstances. Rules can change and exceptions may apply — speak to the CASS team before making a tax, accounting or financial decision.

Confirm when trading ended

Record the actual cessation date and keep evidence of final sales, expenses and outstanding customer or supplier balances. Money received later may still need consideration.

Complete the tax reporting

Your final Self Assessment return must reflect the relevant business results. Loss relief or adjustments for assets can affect the position, so do not assume there is nothing to report.

Review other registrations

VAT cancellation and closing an employer payroll scheme are separate steps where applicable. Deal with final returns, employees and any pension obligations through the correct processes.

Keep the paperwork

Retain the required business records after closure. CASS can help organise the final accounting and tax steps, with legal advice where debts or contractual obligations remain.