Combining Employment and Self Employment
Confused about whether you can be employed and self-employed at the same time? This is a question we get asked a lot.
In the modern world it is an issue for many people. The simple answer is “Yes”, however both types of employment come with numerous complexities and tax obligations. Also, nobody wants to get caught out doing the wrong thing and end up paying the price.
What Types of Income Methods Can You Combine?
You can combine different types of income methods. Here are some of the main methods of what you can combine:
- Employed — The classic method of working.
- Sole Trader — Running your own business as a self-employed individual.
- Partnership – Running a business as a member of a partnership.
- Owning a Limited Company — The biggest difference here is the way you draw your earnings, through the payment of company dividends.
- Property income – Through rental profits.
- Capital Gains Income — Through the sale of assets, i.e. property sales.
HMRC has no interest in inhibiting your ability to work, earn and pay tax. Any form of income you receive, even when combined with other forms of income, is fine, providing you inform them of all of the income you receive.
Generating multiple income streams would generally result in your requirement to submit a self assessment tax return to HMRC each year.
Interested in learning more about being employed and self-employed at the same time or if you have any questions? Contact us today.