Being both self-employed and employed
If you're both self-employed and employed, then both need to be reported on your tax return.
Here's how it works.
If you are self-employed and earning over £1,000 from your self-employment activity, then you need to register with HMRC and file tax returns. Your self employment would be tagged in untied.
If this replies to you, your tax return will also need to include information about any employment you have had - even though it's already been taxed.
In untied, the easiest way to get this is via our connection with HMRC, but you will also generally receive a form from your employer with your details - either a P45 (if you left your employment) or a P60 after the end of the tax year (if you stayed). Income such as Jobseeker's Allowance and pension are reported in a similar way.
Generally there won't be any more tax to pay on your employment. The reason you need to include it though is because this would often take up your personal allowance - meaning it won't be available as well for your self-employment.
The table below uses indicative 2023/24 numbers as an example (this is based on a salary that exactly matches the personal allowance; note that this is not intended to be a full tax calculation but to represent the difference between earning as just self-employed and if you're also employed):
Annual self-employed earnings (income – expenses) |
Tax if you’re only self-employed (income tax + national insurance) |
Tax on your self-employment if you’re also employed (may be higher) |
| £2,500 | £- | £500 |
| £5,000 | £- | £1,000 |
| £7,500 | £- | £1,500 |
| £10,000 | £- | £2,000 |
| £15,000 | £786 | £3,301 |
| £20,000 | £2,273 | £4,787 |
| £25,000 | £3,760 | £6,274 |
| £30,000 | £5,246 | £7,760 |
| £50,000 | £11,192 | £16,166 |
The following video will also be useful: