We were recently asked this question by an employee of one of our clients whose payroll we process. While the answer may seem obvious to some, to others who have not dealt with any aspect of self-employment before it is a very valid question.
There are two ways that this could commonly occur, either:
A – you have got a job (full or part-time) for an employer who pays you and deducts tax and National Insurance, then you start working for yourself alongside this; or the opposite
B – where you are working for yourself and get offered a full or part-time job that you take in addition to your own work – for example, if a regular client offered you a position rather than freelancing for them.
Adding self-employment to your income stream means you will also have to add a tax return to your list of things to do. Luckily, we can help with that (look here!).
There is a lot to consider if you are thinking about starting up your own business, from the legal entity (sole trader or setting up a limited company) down to if you would be in breach of your contract with your employer by doing so. Some employers do have clauses within their employment contracts preventing employees from working outside their employment, especially if it is in a similar field and they could be viewed as a competitor.
There is plenty to think about when going self-employed, but that’s for another blog!