People making extra money through a side hustle are being reminded they could have to register with HM Revenue and Customs (HMRC) if their income exceeds £1,000 a year.
The tax authority has launched a new campaign urging anyone earning extra cash from activities such as photography, baking, creating online content or selling handmade goods to check whether they need to complete a Self Assessment tax return this year.
HMRC said the reminder is particularly relevant during the busy wedding season, when many people earn additional income by making wedding cakes, designing stationery, photographing ceremonies or filming special occasions.
Registration deadline and trading allowance
Anyone earning more than £1,000 from all of their side hustles combined during a tax year may need to register for Self Assessment and declare the income to HMRC. New entrants to Self Assessment for the 2025/26 tax year must register by October 5, 2026, before filing an online tax return and paying any tax owed by January 31, 2027.
Kevin Hubbard, HMRC's Director of Small Business & Individuals, said: "For many people, a side hustle is a valuable source of extra income. If you're earning more than £1,000 a year from your side hustle it's important to understand your tax responsibilities, and HMRC wants to make that as straightforward as possible. You can check if you need to do a Self Assessment tax return by using the tool on GOV.UK. It takes minutes to use, tells you exactly what you need to do and means no unexpected tax bills later."
HMRC has also reminded taxpayers that the £1,000 trading allowance applies to all side hustle income combined, rather than each activity individually. For example, someone who earns £600 from wedding photography and another £500 from creating social media content would exceed the threshold and may need to register for Self Assessment.
What income does not need to be declared?
However, not all extra income needs to be declared. HMRC said people selling unwanted personal belongings, such as clothes or household items, will not usually need to report the money they make. But anyone regularly buying or making goods to sell for profit, or providing services in return for payment, is likely to be classed as trading.
People unsure whether they need to complete a tax return can use HMRC's free online "Where is your additional income from?" checker on GOV.UK, which takes a few minutes to complete and explains whether registration is required.
Case study: Wedding content creator
Wedding content creator Lianna Dickson, from Livingston, said she looked into her tax responsibilities as soon as bookings for her business began to increase. After launching her business following her own wedding, she realised her income had gone above the £1,000 trading allowance and used HMRC's online guidance to understand what she needed to do. She said completing her Self Assessment tax return was "so much easier than I thought it would be" because she had kept accurate records of invoices, expenses and mileage throughout the year.
According to HMRC research, around one in 10 people in the UK are operating in the hidden economy, with almost two-thirds largely unaware they should be registered for tax. The department has published online guidance and a free checking tool on GOV.UK to help people determine whether they need to tell HMRC about income earned from a side hustle.
