A Guide for Individuals with Multiple Sources of Income
Earning income from several sources has become more common in recent years. You might be a landlord, a consultant, a freelancer, or someone receiving dividends and investment income. While this can offer financial flexibility and growth, it also brings added complexity when it comes to managing your finances and meeting your responsibilities.
As tax rules evolve and digital reporting becomes more normal, staying on top of your obligations requires careful attention. Without the right systems and advice in place, it’s easy to miss important deadlines, overlook tax-saving opportunities, or make avoidable errors.
At Hartley Fowler, we work with individuals who have a mix of income types and understand how important it is to have clarity and structure.
Here’s what to consider if you have multiple sources of income in the UK.
Understanding Your Income
Each type of income is treated differently for tax purposes, with its own rules, thresholds, and reporting requirements. Having a clear picture of how your income is made up can help you plan more effectively and reduce your risk of underpaying or overpaying tax.
Employment and Self-Employment
If you are employed, you’ll pay tax through PAYE on your salary, while profits from self-employment are reported through a Self Assessment tax return. This requires careful record-keeping and awareness of your total income to avoid moving into a higher tax band unexpectedly.
Rental Income
Landlords need to report rental income and can claim certain allowable expenses. Changes to mortgage interest relief and the introduction of digital reporting mean that many landlords will need to submit quarterly income updates through HMRC-compliant software. This will take effect from April 2026.
Dividends and Investments
Dividends are taxed separately from salary or rental income, with their own allowance and rates. If you hold shares or other investments, you may also need to consider Capital Gains Tax when assets are sold. Understanding these thresholds and timings can help manage your tax position more efficiently.
For many individuals, it’s the combination of these income types that creates complexity. That’s why having a clear, well-structured financial plan is so important.
Managing Income with Modern Software
With the introduction of Making Tax Digital, more taxpayers are now required to keep digital records and submit updates online. This applies not just to VAT, but increasingly to income tax for landlords and self-employed individuals.
Platforms like Xero and QuickBooks have enhanced features tailored to freelancers and landlords, making it easier to keep track of diverse income and expenses in one place.
Software updates now allow for:
- Automated categorisation of income and expenses, reducing manual errors.
- Real-time visibility of cash flow and profit/loss, helping you plan ahead.
- Seamless submission of quarterly tax updates, ensuring compliance with ITSA requirements.
- Integration with bank accounts and other financial tools simplifies reconciliation.
Staying current with these software developments is vital to avoid penalties and maximise tax efficiency. However, using software alone doesn’t replace the need for expert guidance, particularly when legislation and personal circumstances are more complex.
Important Dates and Deadlines
Managing multiple income streams means you may have several reporting and payment deadlines to keep track of. Missing one can result in penalties or interest charges, so it’s worth being aware of the key dates in the UK tax calendar.
Here are the main deadlines to keep in mind:
Self Assessment
- 5 October 2025 – Deadline to register for Self Assessment if you’re self-employed, a landlord, or receiving untaxed income for the first time.
- 31 October 2025 – Deadline for submitting a paper tax return for the previous tax year.
- 31 January 2026 – Deadline for submitting an online tax return and paying any tax owed for the previous tax year. Also, the due date for your first payment on account, if required.
- 31 July 2026 – Deadline for the second payment on account, if applicable.
Tax Year
- 5 April 2026 – End of the tax year. You’ll report any income earned up to this date in your next Self Assessment return.
- 6 April 2026 – The UK tax year begins. This is also when new thresholds and allowances typically come into effect.
Staying on top of these key dates will help you avoid unnecessary penalties and keep your tax affairs running smoothly throughout the year.
How We Can Help You
Handling multiple income streams involves more than simply using the right software. It requires a thorough understanding of how your various income sources work together and ensuring every detail is properly managed.
At Hartley Fower, we can help you:
- Understand how each income stream is taxed
- Identify reliefs and allowances that apply to your situation
- Stay compliant with deadlines and digital reporting requirements
- Plan ahead to minimise tax and support your long-term goals
Whether you’re a landlord adjusting to new reporting rules or a high earner balancing salary and investments, we can guide you through any uncertainties.
Contact Us Today
Having a clear and well-managed approach to your income is essential. If you’re earning from multiple sources and want to stay ahead of the curve, we’re here to help.
Get in touch to speak with one of our accountants today and find out how we can support your financial planning.