Employment and self-employment are normally reported together in one personal tax return when a return is required. Give the accountant your PAYE documents and your business records so income, expenses and tax already deducted are included once. You do not get a separate Personal Allowance for each activity.
Bring the PAYE figures as well as the business accounts
Provide your P60 or relevant P45, taxable-benefit information and details of job changes. PAYE tax already deducted matters to the final calculation. Sending only the side-business receipts can leave the return incomplete.
Keep the business trail separate
Collect sales, allowable costs, invoices and the trading start or stop date. Mark money transferred from your salary account as a transfer, rather than another customer sale. Costs paid personally still need evidence if they relate to the trade.
There is one overall personal tax position
You do not receive a fresh Personal Allowance for each job or trade. The return brings relevant income together and accounts for tax already paid. Tell the accountant about property, pensions, investment income and student or postgraduate loans too.
Check whether a return is required
A genuine sole trade with gross receipts over £1,000 normally triggers a return, but other circumstances and HMRC notices also matter. Use the current official checker rather than assuming every small side payment creates the same obligation.
Before choosing an SA package, describe all income sources and the year. This makes it easier to confirm the right work and avoid discovering an unquoted extra calculation just before filing.
Reconcile the side business without counting your wages twice
Suppose £500 moves from your salary account to your business account to pay a supplier. That transfer is not another £500 customer sale. Keep the transfer identifiable and give the accountant the supplier invoice separately.
Make a two-part cover sheet: employment documents and tax deducted on one side; business income, costs and accounting period on the other. Add any other income below it. This helps the accountant distinguish the source of funds from the income being taxed.
Check the home nation used for your tax calculation
Tell the accountant whether you live in England, Scotland, Wales or Northern Ireland, and about any moves during the tax year. Scottish rates differ for wages, pensions and most other taxable income; savings and dividends use UK rules. Welsh rates are set separately. Use the rules for the relevant year and your actual taxpayer status.
See Scottish Income Tax and Welsh Income Tax. These differences do not make a London address or an England-only earnings example appropriate for everyone.
One return, two kinds of income evidence
Illustrative example.
A fictional employee has £28,000 of PAYE employment income and a side business with £9,000 income and £2,000 expenses. Bring all three figures, the employment tax deducted and the business evidence. Do not report only the £9,000 paid through the business account.
The £7,000 difference between business income and expenses is only a simplified starting figure in this example. It does not calculate the final tax due, allowances, adjustments or National Insurance. PAYE tax already deducted is evidence to reconcile, not a reason to leave employment off the return.
| Check | Practical action |
|---|---|
| Employment | P60/P45, relevant benefits and tax already deducted. |
| Side business | Sales records, expenses, private-use explanations and accounting method. |
| Overall position | Other income and relevant contributions or repayments for review. |
Should I subtract PAYE deductions from business sales?
No. Keep employment income, employment tax and business records as separate inputs for the return.
What if I changed jobs?
Provide documents for the relevant employments and explain changes so the accountant can reconcile the tax-year position.
Download a checklist for this guide
- Employments and P60/P45 evidence
- PAYE tax deducted and benefits
- Business income and expense records
- Private transfers and missing entries
- Other income and relevant contributions