Full Time Job Plus Self Employed Part Time

[loulou111]

Hello i am after some advice.
If somebody had a full time job that was payed every month by an employer, how would that effect someone who wanted to do a part time job but that job is on a self employment basis how is that possible with tax etc can you be self employed but also employed through a company in a regular job?

[fiction-factory]

It depends on the exact circumstances.

[fiction-factory]

Are you talking about two different people here or are you asking whether someone can be employed in one role but then treated as self employed if they do the same similar job on a part-time basis?

[Ellipsis]

> how is that possible

It is easily possible but, as fiction-factory said, how it's done depends on the circumstances.

[penelope2]

My understanding is Yes you can. For tax purposes you pay for full time job via PAYE and then declare your part-time (self employed) earnings through your yearly tax assessment returns.

[alavahalf]

I did it for a number of years. My employer just charged me the normal rate for tax and insurance on PAYE.
For my part time self employed job I had to pay class 2 contributions on national insurance and had an accountant to deal with the tax return.

[loulou111]

ok it is my brother he has a full time job payed through a security company but to make extra cash has been offered some weekend doorwork on a saturday night but they pay you but you have to be self employed. He has to get a self employment tax code number. I didint know if this was possible as he is paying tax through a regular payed job the same as a normal employee can you do both jobs together?. Or can you only be self employed or a payed employee or both?

[loulou111]

the answers are great thanks everybody

[Retrochic]

lOULOU you can be both self employed and employed. Your brother will need to register as self employed with HMRC and he will be given a business number. He will have to fill in a self assessment tax return every year as self employed, where he will put down his earnings from self employed work, and his earnings from employed work. He will also put down how much tax he has paid through PAYE and how much in Contributions he has paid.

[loulou111]

thanks Retrochic x

[Buenchico]

Assuming that your brother's total income (from both forms of employment) won't push him into a higher tax bracket (which would seem to be very unlikely, based upon what you've written) he'll be taxed at a rate of 20% on everything he earns from his second job. (He won't have any tax-free allowance as that will all have been swallowed up by his first job). So he needs to set that amount aside in order to pay his additional tax bill (on top of what he's paid via PAYE on his main job) at the end of each financial year.

He needs to start by getting a Government Gateway account but, rather oddly, he can't actually register as self-employed until he's started being so. Then he should register straight away. (Getting a Government Gateway account is annoyingly tedious but actually quite straightforward. Your brother needs to ensure that he's recorded the log-in details somewhere that he won't lose them, otherwise he'll end up in a wild panic when the deadline for submitting his tax return approaches. Written from experience!)

At the end of each financial year he'll need to complete a tax return. He should definitely opt to do it online as it's far simpler than the paper version. (With the paper version you have to work through loads of questions just to find out whether they apply to you or not. The online version asks a few simple questions to start with and then only show you any further questions that actually apply to you). He'll need to fill in the details which are on the P60 that his employer should give him at the end of each year, so it's very important that he doesn't forget where he's put it. (Also written from experience!).

Your brother will probably also have to pay a small amount of self-employed National Insurance on his second job but, as it's nowhere near as much as is paid on an employed job, it's nothing much to worry about.