Can I be both employed and self-employed?
Being both full-time employed and self-employed is actually quite common, so the short answer is yes.
We know that setting up as a sole trader can be confusing, so we put together this list of answers to questions you might have.
How do I know if I need to set up as a sole trader?
- You earned over £1,000 from self-employment in the past year
- You need to prove that you’re self employed, for example to claim Tax-Free Childcare
- You want to make voluntary National Insurance contributions so you qualify for benefits
Is self-employed the same as sole trader?
Yes! In short, they’re the same thing:
- “Self-employed” means that you do not work for an employer and you don’t pay tax through PAYE
- “Sole trader” is the formal name for your self-employed business
Can I be both employed and self-employed?
Yes! Being both full-time employed and self-employed is actually quite common, so the short answer is yes.
When do I need to register?
You can register after you’ve earned your first £1,000 from self-employment. The “hard deadline” is 5th October of your second tax year.
If you earn less than £1,000 in the tax year, you don’t need to do a tax return.
How should I name my sole trader business?
You can trade under your own name if you want, or you can choose another name.
Do I also need to register for VAT?
Only if:
- Your turnover will be over £85,000 (the “VAT threshold”), or
- You sell to other VAT-registered businesses and want to reclaim VAT
Want to know more?
We understand this concept may be confusing, that’s why we offer a free consultation to discuss your situation and requirements! Our accountancy services are available nationwide, including: Accrington, Bamber Bridge, Buckshaw Village, Blackburn, Burnley, Chorley, Colne, Clitheroe, Darwen, Hurst Green, Lancaster, Lostock Hall, Longridge, Leyland, Penwortham, Preston, Skipton and the surrounding areas.
