Although you’re self-employed as a consultant, you may also have other forms of income which need to be declared on your tax return.
Other Self Employment
If you have any other types of self employment (such as other franchises (e.g. Makeup or cosmetics) or if you sell items through an online store such as Amazon or eBay, you will need to keep adequate records of these – similar to your Slimming World items. As such, using a simple income/expenses workbook (Excel) may be a good starting point.
We would recommend keeping a totally separate record system for other self-employment. This will not only keep your tax return separate and clear, it also provides good business sense for understanding your profit and loss.
Other Employment
When you are employed, you’ll receive regular payslips and at the end of the year, a P60 form. This provides details of all income and tax/national insurance which has been paid to HMRC before you receive your wage. It is the responsibility of your employer to calculate the correct tax and national insurance for you, and your pay slip will show the relevant amounts.
Your employer will not take into consideration any of your other types of employment or income, therefore they are only responsible for processing your salary.
Benefits
If you receive certain benefits or carers allowances, you may need to declare these on your tax return. The types of benefits can change regularly, therefore check the HMRC Guidance for the latest information.
Pensions
If your only income is a pension and a salary (through employment), you usually don’t need to declare this – however when self employed, you will need to check if you also need to provide information on this – as HMRC is not aware of your earnings until when your tax return is sent (your employer would keep them updated when sending your payslip). Read more on HMRC’s website here.