How do I tell HMRC I am no longer an employer?

Hi there, Kevin. I'm here to help you notify HM Revenue and Customs (HMRC) about ceasing business operations.

When your business stops employing people, you need to tell HMRC immediately. To do so, please follow the steps below to properly close your PAYE (Pay As You Earn) scheme and notify HMRC. I'll guide you on how.

First, submit a final payroll return. You must submit either a Full Payment Submission (FPS) or an Employer Payment Summary (EPS) indicating that you have ceased employing staff. When submitting the FPS, select the box for 'Final submission because scheme ceased' and enter the date your PAYE scheme closed in the appropriate field.

Next, pay any outstanding taxes and National Insurance contributions to HMRC within 17 days after your final payroll submission (or 14 days if paying by cheque).

Then, complete employee records by entering a leaving date on their payroll record and provide them with a P45 form on their last day of employment. For the detailed steps, please see this article: P45 forms in QuickBooks Online Payroll.

Afterward, I suggest closing Your PAYE Scheme. The steps to achieve this depend on the QuickBooks Payroll subscription you're using. You can browse this article for the correct instructions: Closing a payroll PAYE scheme in QuickBooks Online.

Moreover, inform HMRC about any Employment Related Securities schemes that are being closed as part of your business cessation (if applicable).

On the other hand, if you're only temporarily stopping employment (for less than a full tax year), you can keep your PAYE scheme running without issuing P45s. However, submitting an EPS is important to indicate periods without payments if applicable.

For more information about the process above, please read our HMRC guidance.

Finally, as the tax year also draws to a close, it's essential to ensure your books and payroll data are well-organised. Once done, you can cancel your subscription to avoid additional charges. These resources provide the necessary steps to get everything sorted in your QuickBooks Online account before closing your business. 

• Year-end guide for QuickBooks Online
• Cancel your QuickBooks Online subscription or trial

Please note that I'll be around if you need help exporting your books to save a handy copy. You can click the Reply button and tag my name to let me know.