The short answer? Yes, you can. And thousands of people in the UK do it every day.
If you’ve got a full-time job but also want to run a side hustle, from freelance design to selling handmade candles, there’s nothing stopping you. But you do need to know how it works for tax, legal, and practical reasons.
How it works
Being both employed and self-employed simply means you earn money from two different sources:
- Employment: you get paid through PAYE, with tax and National Insurance (NI) deducted before your wages hit your bank.
- Self-employment: you run your own business, invoice clients or customers, and handle your own tax via a Self Assessment return.
These are treated separately by HMRC, but your total income from both is added together when working out your tax bill.
Tax and NI rules
- Your employer handles tax on your salary.
- You’re responsible for reporting and paying tax on your self-employed income.
- You may have to pay Class 2 and Class 4 National Insurance on your business profits, depending on how much you make.
- If your total income pushes you into a higher tax bracket, you’ll pay the higher rate on the part of your income above the threshold – even if your side hustle earnings are small.
Things to check before starting
- Employment contract: Some employers have clauses about outside work. Check for restrictions or conflicts of interest.
- Time management: Juggling both can be demanding. Make sure your side hustle fits around your main job without affecting performance.
- Business records: Keep your self-employed income and expenses well organised from day one.
Why it can be worth it
- Test a business idea without quitting your job.
- Build extra income for savings, debt repayment, or investment.
- Gain new skills and experience that may help in your career.
How Buzz can help
We make side hustle bookkeeping simple. Track your income, capture expenses, and stay tax-ready all year – whether you’re freelancing, renting out property, or running an online shop. No spreadsheets. No guesswork.
Yes, you can be both employed and self-employed. Just keep your records clean, know your tax responsibilities, and check your contract first.
