Q: I have a main job with a company (tax paid through PAYE) and a secondary ‘side hustle’. How does this affect my tax status and how do I pay any extra tax owed?
A: Firstly, it is good that you understand any tax due from your side hustle will not be accounted for through your main job. Your main employer isn’t necessarily going to know about it, and any income certainly won’t be included on your payslip.
You should check if you need to tell HMRC about this additional income. A ‘side hustle’ could include things like selling items at car boot sales or auctions, doing ‘odd jobs’ for neighbours, or creating content for social media. You do not have to pay tax on earnings below £1,000 a year.
If you earn more than this, you will need to register for Self Assessment through HMRC’s website. You should also maintain records of all sales, purchases, income and expenses to help you complete your tax returns.
You can, of course, engage with us to deal with HMRC on your behalf.