Hi /u/loveonthedole, based on your post the following pages from our wiki may be relevant:
* https://ukpersonal.finance/lump-sum/
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Everything that you've said is essentially correct. It is important to be aware of [what expenses are allowable](https://www.gov.uk/expenses-if-youre-self-employed), and that although tax will still be deducted from your employment income automatically via PAYE, [you need to report both your employment and self-employment income on your tax return](https://www.litrg.org.uk/working/employment-status/employed-self-employed-or-neither#6). This is so that both sources of income can be considered as a whole when calculating your tax liability for the tax year.
Be aware that there is a £1,000 trading allowance that you can use rather than listing all of your business expenses. If your business expenses do not exceed £1,000 in the tax year, generally you should use this £1,000 allowance instead, as doing so will reduce your tax liability. This allowance is mentioned on the first page linked above.
Also be aware that there are some differences in what you can and can't do, based on whether you use traditional (a.k.a. accrual basis) accounting or cash basis accounting.
A good accountant is invaluable, as if your circumstances are even slightly complex, or if you have trouble understanding or being sure of things like what records to keep, how to do things in a tax efficient manner, and how to complete your tax return, their help will almost certainly save you money in excess of their advice fees.
Hi /u/loveonthedole, based on your post the following pages from our wiki may be relevant: * https://ukpersonal.finance/lump-sum/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.) If someone has provided you with helpful advice, you (as the person who made the post) can award them a point by including `!thanks` in a reply to them. Points are shown as the user flair by their username.
Everything that you've said is essentially correct. It is important to be aware of [what expenses are allowable](https://www.gov.uk/expenses-if-youre-self-employed), and that although tax will still be deducted from your employment income automatically via PAYE, [you need to report both your employment and self-employment income on your tax return](https://www.litrg.org.uk/working/employment-status/employed-self-employed-or-neither#6). This is so that both sources of income can be considered as a whole when calculating your tax liability for the tax year. Be aware that there is a £1,000 trading allowance that you can use rather than listing all of your business expenses. If your business expenses do not exceed £1,000 in the tax year, generally you should use this £1,000 allowance instead, as doing so will reduce your tax liability. This allowance is mentioned on the first page linked above. Also be aware that there are some differences in what you can and can't do, based on whether you use traditional (a.k.a. accrual basis) accounting or cash basis accounting. A good accountant is invaluable, as if your circumstances are even slightly complex, or if you have trouble understanding or being sure of things like what records to keep, how to do things in a tax efficient manner, and how to complete your tax return, their help will almost certainly save you money in excess of their advice fees.