Employed and Self Employed

If you are both employed and self employed at the same time, or at different times in the same tax year, it can be difficult to calculate the amount of tax, National Insurance and Student Loan that you have to pay HMRC. You will probably pay tax on your employed income through Pay As You Earn (PAYE), but for any money you make through being self employed you will have to pay to HMRC separately.

The first step is to register as Self Employed, so HMRC know to ask you for Class 2 National Insurance. They will then ask you to fill in a tax return each year, with details of your employment income and also any profits you make from self employment. This is called Self Assessment, and it allows HMRC to tell you how much additional tax and National Insurance you have to pay.

To read more about changing from employed to self employed (or self employed to employed), check out this new website with details and further links - Employed and Self Employed. There is also a tax calculator to help predict how much HMRC will ask you to pay them.

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