Employed and Self-Employed at the same time

qs123 · Oct 4, 2008

Hello All,

I'm currently self employed and am starting a new employed job in a couple of weeks. I still intend to do self employed work though in evenings and weekends.

I know I can be registered as self employed and at the same time be an employee but is there any chance my new employer could find out for example through a change in tax code?

What about NI as I currently pay about £2.30 a week being self-employed. How would this work?

Thanks

ginantonic · Oct 4, 2008

I would think you have to be careful, as some employers really don't like their employees having another job. In a lot of cases, you are supposed to tell them.
I am both self-employed and on PAYE with a casual part time job, it makes filling in the tax return a tad complicated!

Jenni384 · Oct 4, 2008

NI for employment and self employment are totally separate, don't worry about that (if your earnings are under about 4800 for self employment you can apply for an exception from class 2, which is usually recommended as your PAYE class 1 should cover your contribution record).

Check your employment contract, especially if your self employment is in the same industry as your job.

downsouth · Oct 4, 2008

ginantonic said:
I would think you have to be careful, as some employers really don't like their employees having another job. In a lot of cases, you are supposed to tell them.

Hmm, think you'll often find in a FT employee's contract a term about outside work and generally as long as there is no conflict of interest then theres no problem,

end of the day its nowt to do with your employer what you do outside of work as long as you do the work activities that you are employed for.

qs123 · Oct 5, 2008

I'm not sure if I'm allowed or not allowed however I'd rather not get found out. Therefore I was wondering if by being registered as self-employed as well there is anyway I could get found out?

Alison Jones · Oct 5, 2008

HI

If you keep your personal allowance tax code for your main job I don't think your employers would be able to tell and assuming your job is full time then all your personal allowance would be used up on your job anyway. I did have a part time job alongside my self employment but they were about equal and for simplifying my tax return I used BR rate in my job, but Inland Revenue kept trying to change this to the personal allowance tax code so Inland Revenue won't have a problem with you using your personal allowance on your job rather then self employment.

Alison

Jenni384 · Oct 5, 2008

Even if your tax code for PAYE was changed from 'standard', the employer never knows what this is made up of, and if they ask you (which is unlikely) you are allowed to tell them to mind their own business. There are any number of factors which can affect a tax code, so I wouldn't worry about this.

davdav · Oct 14, 2008

I am and have been self employed for 5 years.

I have just been offered a full time position on PAYE...

Therefore the PAYE job will now become my main income.

I will hopfully still earn a small amount from my self employment but not a great deal.

So my question is - what do i do?
Will I pay a lot of tax on my main job?
Will I have to pay NI on my main job even though i'm paying class 2?
What form will I complete?
This is not my first PAYE job - I have had a small part time job until now, but they have not deducted tax from me on that.

Any ideas? Is it going to be less of a head ache and cheaper for me to just totally stop my self employment?

HELP

elaine@cheapaccounting · Oct 14, 2008

Fill this in for class 2 NI exemption:

http://www.hmrc.gov.uk/forms/cf10.pdf

CassioAcc · Oct 14, 2008

If you keep both going, then you will complete Employment pages on your tax return ( in addition to your self employment) as I assume you were going to do for the part time job you have now.

elaine@cheapaccounting · Oct 14, 2008

You will need to complete a P46 for your new role:

http://www.hmrc.gov.uk/forms/p46.pdf

I think you will tick box B so you will be taxed as though you have the standard personal allowance (assuming you have finished the other part time job)

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Employed and Self-Employed at the same time

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