managing mixed income

Employed & Self-Employed

Most performers have a mix of employed and self-employed work. Here's how to handle both on your tax return without breaking a sweat.

great news

You've Got This

If you've been recording your income and expenses as you go, your tax return doesn't need to be complicated—even with mixed income types. Let's walk through it together.

step by step

Completing Your Tax Return

Tell HMRC How Many Jobs

The return asks you to specify how many employed jobs and self-employed businesses you have. Just enter the numbers—e.g. "1 employed job" and "1 self-employed business."

Enter Employed Income

Fill in your income and deductions from your employed job(s) using your P60 (if still employed) or P45 (if you left). This information may already be filled in for you since your employer reports it to HMRC—just cross-check to make sure it's correct.

Enter Self-Employed Income

Input just two figures:

  • Total self-employed income for the tax year (one figure)
  • Total allowable business expenses (one figure)

That's it! You don't need to break down expenses by category or provide evidence at this stage.

Complete & Submit

The rest of the return involves scrolling through sections and confirming that various questions don't apply to you. Straightforward once you've entered your income figures.

the calculation

How HMRC Works Out Your Tax

HMRC will calculate whether you owe additional tax or are owed a rebate based on:

  • Your total employed income
  • Your self-employed profit (income minus expenses)
  • Tax already deducted from employed income

💡 Tip: If you overpaid tax through PAYE employment, you may get a rebate. Your self-employed income is added on top, and you'll get one final tax bill.

smart habits

Record Keeping Tips

💼 Employed Work

Record income as soon as you get your payslip, including all tax and NI deductions. Keep all payslips together.

🎭 Self-Employed Work

Record income as soon as you do the work so you can invoice quickly. Keep invoices and payment records organized.

remember

Don't Worry

If any of this feels overwhelming, just complete your tax return. HMRC will make sure you've paid the right amount. As long as you've recorded your income honestly, you'll be fine!

Once you get the hang of it, managing mixed income becomes second nature. 💙

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