Can I be employed and self-employed at the same time?

I want to start my own business, but I’m not quite ready to leave my job yet.  Is it possible to be an employee and self-employed at the same time?

Yes, you can. For tax purposes, you’ll continue to have one personal allowance which you claim against your employed tax code. Your employed and self-employed income is then combined into one. A few things you’ll need to do to stay on the right side of HMRC:

  • Register as being self-employed within 3 months of starting your business – if you don’t, you could face a £100 penalty
  • Complete a Tax Return every year.
  • Pay Class 2 and Class 4 National Insurance contributions on your self-employed income, as well as the Class 1 contributions that you’re used to on your employment income. However, dependent on your level of income, there is a maximum amount of national insurance you have to pay and a refund is available should you overpay during the year.

Give us a call for more information on how it all works!

What our clients say...

“I have used KPP as my accountants since April 2015. The team has provided me with expert advice on contractors accounts, they are very professional and efficient whilst providing clear and concise guidance.”

Anthony Harbinson, AH21 Consulting Ltd