If I set up as self employed, will my current employer be notified of this?

Question

I’m just in the process of setting up as a sole trader , alongside my current employment and was wondering about a few things.

The industries are completely different and it doesn’t state in my contract I can have other employment but just wondered if they will find out?

I am assuming UK (based on your link). Please tag your country — JohnHC, Dec 09 '16 at 16:24
Yes, add your country for any meaningful replies. But in the EU your employer will not be notified: why would they have the right to receive such information? — user3244085, Dec 11 '16 at 10:12
They may be able to tell you are receiving another income from your tax code, but they won't know why. — Terry, Mar 01 '17 at 12:31

score 2 · Answer 1 · answered Dec 09 '16 at 16:22

If I set up as self employed, will my current employer be notified of this?

No. You might have a change in tax code from HMRC, but your employer has no right to question it.

The industries are completely different and it doesn’t state in my contract I can have other employment but just wondered if they will find out?

Probably not, but it's a good idea to tell them anyway just in case a conflict of interest arises down the line

A couple of extra tips:

Record your expenses from day one. Do it daily.
Use a decent accountant for if you go Ltd company, I use Quba
Put 20% of your takings to one side for corporation tax before paying yourself (if Ltd), then put 20% of what you pay yourself to one side for personal tax

Source: Currently a Ltd Company Cotractor and former HMRC Revenue Officer and Taxation Adviser

1 Answers1