If a client has ceased trading
Check whether the client has any complex business debts, such as an ongoing liability for a business lease. If any complex debts are identified, the client needs specialist advice. Specialist advice might also be needed if the client has a disputed tax debt or has failed to submit tax returns (see TaxAid
1; telephone: 0345 120 3779).
Providing the client does not have any complex business advice needs, you can usually give the client full debt advice. You should check whether the client has told their creditors, suppliers and HMRC that they have stopped trading and give advice on that if needed.
If the client has ceased trading and is no longer self-employed, they must inform HMRC.
2 If not advised, HMRC will assume that the individual is still self-employed and so self-assessments returns will still be required to be submitted – failure to submit self-assessments can lead to penalties and fines being imposed.
3