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HMRC internal manual

PAYE Manual

Employment maintenance: cease employment: individual becomes self employed

When you learn that an individual has left employment and become self-employed, you will need to take action to clear the case before the appropriate SA Office takes ownership of the individual’s tax affairs.

This will involve the appropriate officer

  • Clearing the record to the date of cessation
  • Advising the Department for Work and Pensions (DWP) if the individual is a pensioner
  • Transferring papers to the appropriate SA Office if required

Note: Repayment should not be invited, but if claimed, can be made in the usual way. For more information see PAYE91020.

If the individual is currently an SA case, refer to ‘Movement of taxpayer records’ at SAM103000 onwards in the SA Manual (SAM) before taking any further action.