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Ceasing Self Employment, Class 2 NI

Ceasing Self Employment , Class 2 & Self Assessment Return

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I submitted tax return for client entering date of cessation of trading. Tax return software correctly calculates part year Class 2 NI.

Irecieved a calculation showing 52 weeks Class 2NI. I phone HMRC and am told cessation date not shown for NI, not his area, he puts me through to a lady in NI.

Lady in NI takes an age, including asking how is the NI paid! I pint out Class 2 NI collected underself assessment for some years.

Total time 32 minutes. 

 

Has any one else had this problem?

Replies (3)

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By lincolnartist
18th Jan 2020 18:04

Submit the online form for cessation of self-employment https://www.tax.service.gov.uk/shortforms/form/CeaseTrading

Then the Class 2 NIC is updated and a new calculation issued (takes a few weeks but as long as your client pays the correct amount, the self assessment account eventually balances)

Total time 5 minutes

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By Paul D Utherone
19th Jan 2020 10:44

If you only tell HMRC of the cessation through the SA return, and don't also notify NICO separately, then NICO will keep telling HMRC Class 2 is due

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By CJaneH
19th Jan 2020 12:36

Thanks for replies. I was sure in the past that HMRC notified the NI people. I have never had to notify HMRC in 25 years.

I will look for the on line form for cessation of trade.

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