Self-Employment Query

[mrlondoninuk]

Hi All

I have a query.

Simply put, I have recently switched from T1 Ent to T2 Gen. I am aware that you can't remain self-employed nor can you register as one. However, after closing my company down and filing all the returns (took about a month for all payments to clear before I sent my DS01 for strike off) when I told my accountant that I need to ensure I am no longer self-employed as that will breach my condition of stay, he says "As we are currently in the 2018/19 tax year and you are ceasing the company now I will have to complete a small tax return for you next year. On there it will tell HMRC you are no longer self employed which will close your account with them. There shouldn’t be any tax to pay on that one as it is only for a very small period."
WOuldn't this mean I will stay self-employed until that time and will this breach my condition of stay? What should I do? Am I missing something?

Thanks
Olubo

[Sreeni83]

Hi Olubo

If you were self employed, I dont know your status in the sense, if you were director of a limited company or operate as sole prop. Either way, on the SA etc, you will declare last of trading etc and this should match with the invoices you have raised etc for your clients. I would definitely file the returns immediately as legally you can and dont have to wait till 31st Jan 19 provided your books are in order.

Regards
Sreeni