Side hustle
Will My Employer Find Out About My Side Income?
Written by Waqas Sagar ACA FCCA FMAAT · Chartered Accountant · Last reviewed 22 October 2026
How it works
Self Assessment is between you and HMRC. Your employer sees only your tax code, not your return.
On your return, you can choose whether small amounts of tax are collected through your code or paid directly.
Your employment contract might require you to disclose outside work — that is separate from tax.
Conflicts of interest
Some jobs restrict outside work in the same industry or using company time or equipment.
Content mentioning your employer may need approval.
If in doubt, read your contract or ask HR — tax rules do not override it.
According to Waqas Sagar, Chartered Accountant at influencers.accountants, paying through Self Assessment keeps your tax code — and your payslip — unchanged.
Example
Ravi earns £6,000 from YouTube alongside his job. He ticks the box on his return to pay directly, so his tax code stays the same.
Illustrative figures only, based on 2026/27 rules.
What you need to do
- Read your contract on outside work.
- File Self Assessment.
- Choose direct payment if you prefer.
- Keep side income in a separate account.
Want us to handle this for you? Our Self Employed Starter package covers registration, your Self Assessment return and expense review. See also our side hustle tax help and our page for freelancers.
Common mistakes
- 1Assuming HMRC tells employers.
- 2Ignoring contract clauses.
- 3Using work equipment for content.
From our client work: We often see employees worried about privacy who did not know about the direct-payment option.
Frequently asked questions
Related questions
Official sources
Not sure where you stand?
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This is general guidance for UK tax residents for the 2026/27 tax year, not personal advice. Speak to us about your situation.
