While it may be very time consuming and challenging to fill the roles of being employed and self-employed efficiently, it is indeed possible, and there are many ways to go about it. As many as two-fifths of the UK population have some sort of sideline income, and if they can do it, so can you!
Many people in the UK and around the world manage a full-time job alongside a business of their own, and it is becoming more and more common as people look for multiple income streams and additional ways to make money. However, you should read your current employment contract very carefully before starting a business of your own. There may be certain clauses that state that you are not allowed to start a business while working for your current employers.
There is also the risk of employees stealing clients for their new business venture, as well as using company secrets to their advantage. In a confidential conversation, HR will be able to advise what you are and are not able to do while working as an employee at your current job.
Open communication is always best, and it will be better than your boss hearing it from you instead of anyone else. Your boss may be able to offer you valuable guidance and advice and support you in your business venture. If your business currently takes up a large portion of your time, you may want to seek out a part-time job or a job with flexible working hours.
Because so many people are in need of extra income, owning a business while being employed is far more common than it used to be, and employers and colleagues are usually very accepting. People start businesses while still being self-employed for many different reasons. Their business may allow them to pursue their passions, they may be starting a business with the long-term goal of eventually leaving their place of employment, or they may simply need to supplement their income.
Whenever you start a business, whether currently employed or not, you need to register your business with the HMRC as a sole trader or a limited company. If you are a sole trader, you are self-employed and have full ownership over your business, while a limited company is a distinct company with a brand identity and can be controlled by more than one person.
It is advisable to do some research into both of these options to determine which one is suited to you and your needs. It is a legal requirement to inform the HMRC when you start making money from your business.
This is so that you can process your Self Assessment and other taxes correctly. No matter how much of a hobby you think your business is, you could end up in legal trouble if you fail to have it registered. Even if you are just cutting hair in your basement, you could experience a sudden increase in popularity which could end up with the HMRC on your case. We have dedicated an entire article to starting a business while you are employed, and you can read it here to find out more about this topic and gain knowledge about the steps involved in starting your own business.
While it is very easy to determine whether you are employed it says so on your employment contract , self-employment can be a bit trickier to determine.
In the UK alone, there are currently 5 million self-employed people, all working for themselves and making money in various ways.
Basically, if you are making money by any means other than employment, you are most likely self-employed. And if you are self-employed, regardless of whether you are also employed or not, you will need to register as self-employed with the HMRC. If you are employed and self-employed, you will need to manage your time wisely and be aware of your responsibilities and what is expected from you in both positions.
It is your responsibility to research what you need to do in terms of registration and taxes in both positions. The most important factor to note if you are self and employed and employed is that you will have to pay your tax through Self Assessment as well as PAYE.
When you are employed, the company you work for should handle your PAYE tax on your behalf. This can be a fairly confusing process, and you should seek out the assistance of a professional accountant if you find yourself confused.
It is very important that you make an effort with your Self Assessment as a self-employed person as having your taxes and finances in order could contribute immensely to your success. Be wary of applying for jobs that tell you that your title will be self-employed when the responsibilities are those of an employed person.
These employers are often looking to take advantage of people and avoid paying PAYE, leaving you the responsibility of doing a Self Assessment when the company should be handling PAYE for you. Being self-employed does not give you the right to slack off at your regular job. If anything, your performance at work will be closely analysed to ensure that you are capable of holding your job while starting your own business.
If you are self-employed, you can also pay voluntary Class3 NIC. However, there are small earnings exemptions for self-employed people making less than a certain amount each year.
Not paying NIC can be considered a serious offence, and you should prioritise paying this and ensuring that you pay the correct classes. There are many advantages to being both employed and self-employed, and that is why so many people opt to go down this route.
Some of the benefits of holding an employment and a self-employment include:. Starting a business while still being employed is a great way for you to learn about being a business owner without as many risks of those leaving their jobs to pursue self-employment.
Starting a business while you still have a job may allow you to retire from your job sooner if your business begins to do well and have the ability to provide you with passive income. You get the best of both worlds. While there are many advantages to being both employed and self-employed at the same time, there are also many challenges involved in this situation, and it can get exhausting very quickly.
One of the major challenges that come along with being both employed and self-employed is maintaining a healthy work-life and personal life balance. If you are working a traditional nine to five job and then spending the evenings and weekends working on your own business venture, you may find yourself feeling burnt out with little time to spend with family and friends, and tending to household chores, enjoying hobbies etc. Work will become your life. While making money and pursuing success may be your priority right now, it is very important that your work life does not take over your entire life.
If your business starts to get very busy, you may want to consider hiring someone to help you or speaking to your boss about reducing your working hours at your job. Remember to ask for help when you need it. These are some of the signs that indicate that you may be in a position to handle being self-employed and employed:. In order to ensure that your taxes, finances and National Insurance Contributions are all above board as a person that is both employed and self-employed, we recommend speaking to a professional accountant or financial advisor.
Is university a waste of time these days? Find out our thoughts. The difference here is that people who prioritize this reason would only consider the others on this list as secondary reasons. For such people, success is primarily measured in the material aspect. This is when wealth is the final goal, and there are actually people who are so motivated by money in this fashion.
This is being employed for the sake of doing your part as a member of the human race. This is especially noticeable in service professions, where the service being provided is seen as beneficial to others.
People who follow this reasoning to become employed often have a higher level of accomplishment and contentment in their work and their lives in general.
In essence, having this reason means you want to accomplish your personal mission through the work that you could be doing for your prospect employer. Of all the possible reasons, this is the one that calls for the deepest reflection since it can lead a person to discover their true reason for pursuing employment.
Any or all of these reasons can be considered factors in deciding our career path. For first-time jobseekers, a greater awareness of personal motivations can make the jobseeking process much clearer. For people who have been employed before or are currently employed, these reasons can influence either career development or shifting. As we become more aware of the factors involved in getting employed, being certain of our motivation is a great step in making us more employable. It enables us to fully commit to the employment opportunity that we could be given, thereby allowing us to embrace our work for everything that it is.
It is in knowing why we work from the bottom of our hearts that we can put aside any doubts of where we truly belong. Search for:. Recent Posts Healthy in mind and body: the synergy of COVID safety and mental health in the workplace Workplace COVID precautions and you: a refresher Save on hiring and training costs when you protect your people and workplace Save on utilities and resources when you protect your people and workplace Save on repairs and maintenance when you protect your people and workplace.
Privacy Notice We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. However, you may visit "Cookie Settings" to provide a controlled consent. Cookie Settings Accept All. Manage consent. Close Privacy Overview This website uses cookies to improve your experience while you navigate through the website. If your business begins to really take off, and you equip yourself with the right skills and tools, you have the opportunity to become very successful in a short amount of time.
So whether you make more money being employed or self-employed, it all depends on your individual situation. Keeping that in mind, in the UK, self-employed people do make a fair amount more than the average salary of an employed person.
Studies like this can be somewhat detrimental as it encourages people to leave their regular jobs and pursue business ventures without the right skills or tools. One of the main advantages of being self-employed is getting to decide your own working hours, and only work when you feel like working.
While most self-employed people work fewer hours every week than employed people, it usually takes an incredible amount of time and effort to start their businesses and develop the necessary skills in order to become successful. It also takes an incredible amount of self-discipline for self-employed people to get everything they need to do done with no supervision.
Employed people are used to having their employers guide them and tell them what to do, so it can be difficult to maintain motivation and work ethic without someone to report to. In the UK, it is possible to be employed and self-employed at the same time as long as your current employment contract allows for you to have a business of your own. Business owners that want an additional income stream may also apply for regular jobs.
Depending on the current demands of your business, you may want to look for employment opportunities that are part-time or allow for flexible working hours. Being both employed and self-employed may be able to help you choose which option suits you best. There are many people in the UK currently holding both positions, so it is definitely possible. Making the change from being employed to being self-employed is quite significant. Is university a waste of time these days? Find out our thoughts.
Terminating an apprenticeship early? When do I need to register as self-employed. Right to buy faces further criticism due to social housing shortages. What is the role of information technology in business? We promise only quality content, tailored to suit what our readers like to see! Real Business has championed entrepreneurship in the UK since It is now the main source of inspiration, education, and collaboration for the owners of fast-growing businesses, from startups to mid-market companies.
Real Business provides readers with high profile interviews, news, insight and industry benchmark reports, as well as a growing stable of events tailored to SME growth. Home About Us Contact Menu. FREE newsletter. Telling the truth about SME life today. Is it better to be self-employed or employed. Joel Hurst March 22, 4 mins. Share on facebook. Share on twitter. Share on linkedin. Share on email. November 11, All you need to know about Business Asset Disposal Relief.
Read More. November 10, Does the demand for perfection decrease the chance of a good business outcome? Related Stories. A significant challenge for businesses is maintaining their cash flow. Daniel Bowsher, owner at Invoice Finance Connect, provides companies with Entrepreneur and leader, Jessica Kruger discusses why it's time to stop focusing on profitability and more on growth.
Ultimately, the
0コメント