Can I be a sole trader and employed at the same time?
Updated 2026-07-03
Yes. You can be employed full or part time and also register as a sole trader for separate self-employed income. You'll pay tax on your combined income through a mix of PAYE (via your employer) and Self Assessment (for the self-employed income), and you must register with HMRC once your self-employed income requires it.
FAQs
Do I need to tell my employer about a side hustle?
Not legally in most cases, though check your employment contract for any conflict-of-interest or moonlighting clauses.
How much can I earn before I need to register?
There's a trading allowance threshold below which you may not need to register, check the current figure on GOV.UK since it's subject to change.
Does this affect my employed tax code?
Not directly, since the two income types are taxed through separate mechanisms (PAYE and Self Assessment) which HMRC reconciles centrally.
References
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