When you stop trading, you still have Making Tax Digital (MTD) obligations to meet. Find out what to tell HMRC and what to submit in Sage Sole Trader and Sage Accounting.
If your business stops trading part way through the tax year, your MTD for Income Tax obligations don't end straight away. Tell HMRC the date your business ceased, send one final quarterly update, and submit an end-of-year tax return for that tax year.
Follow the steps in the order below. Tell HMRC the cessation date before your next quarterly update deadline.
- Sign into your HMRC online services account and tell HMRC the date your business stopped trading.
- Send your final quarterly update in Sage. Include all income and expenses up to your business end date. You don't need to send further quarterly updates for this business after that.
- Submit your end of year tax return. You still submit an end-of-year tax return for the tax year in which you stopped trading. This return includes your final business figures.
NOTE:
Your MTD obligations continue if you have other qualifying income. For example, you may stop trading as a sole trader but still receive rental income from a property. In that case, you keep digital records and send quarterly updates for the property income. This applies even when the rental income falls below the MTD threshold.
- Solution ID
- 260805093700860
- Last Modified Date
- Wed Aug 05 09:37:05 UTC 2026
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