Self employed and employed at the same time

Sjohn

I am currently self employed - I have been for around 3 years now. I’m looking at possibly doing some part time employed work while still continuing my self employed job too. How will this affect my tax? Obviously I do a tax return myself at the end of each tax year. Would my return be affected by this potential new employment?

Any advice is much appreciated!

polymaff

Advice: study the many, many threads on this subject. You're the second thread-poster today !

There's little else to advise upon. Just make sure you have the right self-assessment sections for all your taxable incomes and then declare the incomes in the relevant sections.

And if this increases your taxable income, expect to pay more tax.

TheManOfStraw

Self-employment and employment are both subject to income tax the same rates and terms, except one is collected throughout the year through PAYE and one submits a self-assessment tax return at the end of each year and pays the annual figure in installments as you will know. If you are earning more money part-timed then you will pay more income tax but only the same as if you earned it through self employment in addition to what you normally earn.

Your self assessment tax return income tax liability might be higher than what it normally is but its only because you've already took advantage of your personal allowance throughout the year when paying PAYE. But your total income tax paid through both would be the same as if you had earned the samea mount through self employment.


The only difference in the amount of tax paid would be national insurance rates which are different. The effect of this wouldn't be too significant at all. I think self employment income NI is 9% whilst employment income NI is at 12%.