PAYE Basics

How to Leave Self Assessment as an Employee (and Whether You Still File for 2025/26)

3 November 2026 · 5 min read

Written and reviewed by the AfterTaxSalary team · Updated for 2026/27 · Editorial standards · Methodology

How an employee tells HMRC they no longer need to send a Self Assessment return, why to do it well before 31 January 2027, the separate steps for stopping self-employment and moving the Child Benefit charge to PAYE, and when a 2025/26 return is still due.

Contents ▾
  1. 1. Key facts
  2. 2. Why employees end up in Self Assessment, and how each one ends
  3. 3. Moving the Child Benefit charge to PAYE
  4. 4. Check before you leave

Quick answer (2025/26 tax return)

Tell HMRC as soon as possible that you no longer need to send a return, using HMRC's online service, or by phone or letter1. Do it well before 31 January 2027: HMRC needs time to review it, you could get a penalty if you leave it too late, and HMRC will tell you if a 2025/26 return is still due1. If you were only in Self Assessment for the Child Benefit charge, phone HMRC to switch it to PAYE5.

Not on PAYE? Browse all 7 packs in the Tax Pack Library  · £9.99

Who this guide helps

  • Employees comparing calculator results with a payslip
  • People checking why net pay changed without a salary change
  • Job movers who need a clear baseline before comparing offers

What this guide covers

  1. Key facts
  2. Why employees end up in Self Assessment, and how each one ends
  3. Moving the Child Benefit charge to PAYE
  4. Check before you leave

At-a-glance examples (2026/27)

Typical default outputs for quick context.

Gross salaryNet monthlyNet annualOpen
£40,000 £2,693.30 £32,319.60 View page
£60,000 £3,779.78 £45,357.40 View page
£80,000 £4,746.45 £56,957.40 View page

Key facts

  • Tell HMRC as soon as possible if you no longer need to send a tax return. Use HMRC's online service, or phone or write if you cannot use it1.
  • HMRC needs time to review the request before the 31 January Self Assessment deadline, and you may have to pay a penalty if you do not tell them early enough1.
  • After you contact them, HMRC will tell you if you still need to send a tax return1.
  • Leaving does not cancel a year you still owe a return for. If any of GOV.UK's reasons to file applied between 6 April 2025 and 5 April 2026, the 2025/26 return is still due online by 31 January 202723.

Why employees end up in Self Assessment, and how each one ends

Common reasons, and what to do when they stop
You were in Self Assessment for When it stops
A side business or freelance work Tell HMRC you have stopped being self-employed; the same online service covers this
The High Income Child Benefit Charge only Phone HMRC to leave Self Assessment and pay the charge through PAYE instead
Rent, dividends over £10,000 or other untaxed income Tell HMRC you no longer need a return once the income has gone
A one-off Capital Gains Tax bill File the return for the year of the sale, then tell HMRC
Higher-rate pension relief claims You can claim through HMRC's online service and your tax code instead

Sources: stopping self-employment and the Child Benefit charge route145; who must file2; pension relief claims are on our higher-rate relief guide.

Moving the Child Benefit charge to PAYE

If you used Self Assessment only to pay the High Income Child Benefit Charge, you can switch by phoning HMRC to leave Self Assessment and register for PAYE. Have your adjusted net income, the National Insurance number of any partner who received Child Benefit, and your relationship dates ready5.

HMRC then sends a new tax code to you and your employer or pension provider. PAYE can be used for the current or previous tax year if the charge is paid on or before 31 January after the tax year: for 2025/26, by 31 January 2027. After that date, or if you need a return for any other reason, the charge must go through Self Assessment56.

Check before you leave

  • Look at 6 April 2025 to 5 April 2026 on its own. A side business that stopped in May 2026 still needs a 2025/26 return if it earned over £1,000 in that year2.
  • Use GOV.UK's checker if you are unsure whether you need to send a return7.
  • Do not wait for 31 January. If HMRC still expects a 2025/26 return and none arrives, the late filing penalty starts at £1003.

Related pages on this site

Use the calculator for practical scenarios

Baseline £35,000 (England) £50,000 in Scotland £75,000 in England Compare two offers Target a £3,000 monthly net £40,000 salary page (England) £60,000 salary page (England) £80,000 salary page (England) City comparison pages

2026/27 factual reference points

Current tax-year thresholds used across this guide and calculator.

NI thresholds

  • Primary threshold: £12,570
  • Upper earnings limit: £50,270
  • Rates: 8% then 2%

Student loan plans

  • PLAN1: threshold £26,900, rate 9%
  • PLAN2: threshold £29,385, rate 9%
  • PLAN4: threshold £33,795, rate 9%
  • PLAN5: threshold £25,000, rate 9%
  • Postgraduate: threshold £21,000, rate 6%

Frequently asked questions

How do I tell HMRC I no longer need to do a tax return?+

Use HMRC's online service on the GOV.UK page about no longer needing to send a tax return, signing in with your Government Gateway details, or phone or write to HMRC's Self Assessment helpline. HMRC will tell you if you still need to send a return.

When should I tell HMRC?+

As soon as possible. HMRC needs time to review your request before the 31 January deadline, and you may get a penalty if you do not tell them early enough.

Do I still need to file for 2025/26 if I leave Self Assessment now?+

Yes, if any reason to file applied between 6 April 2025 and 5 April 2026, for example self-employed income over £1,000 or Capital Gains Tax to pay. That return is due online by 31 January 2027.

I only filed for the Child Benefit charge. Can I stop?+

Yes. Phone HMRC to leave Self Assessment and register to pay the charge through PAYE. HMRC sends a new tax code to you and your employer. For 2025/26 this works if the charge is paid by 31 January 2027; after that it must go through Self Assessment.

I stopped my side business. Is that the same as leaving Self Assessment?+

You need to tell HMRC you have stopped being self-employed, which the same online service covers. You may still need a return for the year you stopped.

Can I test this guide topic in the calculator?+

Yes. Use the scenario links in this guide to open prefilled states, then adjust salary, region, loan and pension settings.

Related guides

7 min read
Do Employees Need to Do a Tax Return? The 2025/26 Checklist (Due 31 January 2027)
8 min read
Child Benefit High Income Charge: Estimator, 2025/26 Tax Return and PAYE Options
6 min read
Pay Your Self Assessment Bill Through Your Tax Code: the £3,000 Limit and 30 December 2026

Sources & references

Official

The rates, thresholds and rules on this page are drawn from the official UK government sources below, using the confirmed 2026/27 figures. Each link opens the relevant HMRC or GOV.UK page in a new tab.

  1. Self Assessment tax returns: if you no longer need to send a tax return — GOV.UK www.gov.uk/self-assessment-tax-returns/no-longer-need-to-send-a-tax-return
  2. Self Assessment tax returns: who must send a tax return — GOV.UK www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return
  3. Self Assessment tax returns: penalties — GOV.UK www.gov.uk/self-assessment-tax-returns/penalties
  4. Stop being self-employed — GOV.UK www.gov.uk/stop-being-self-employed
  5. High Income Child Benefit Charge: pay the tax charge through PAYE — GOV.UK www.gov.uk/child-benefit-tax-charge/pay-tax-charge-paye
  6. High Income Child Benefit Charge: pay the tax charge — GOV.UK www.gov.uk/child-benefit-tax-charge/pay-the-charge
  7. Check if you need to send a Self Assessment tax return — GOV.UK www.gov.uk/check-if-you-need-tax-return

Verified against published UK government guidance for 2026/27.