Millions of people across the United Kingdom are being urged to check whether they need to submit a tax return, as HM Revenue and Customs (HMRC) issues a fresh alert regarding the £1,000 trading allowance rule. The tax authority has released updated guidance and an online tool to help individuals determine if they must complete a Self Assessment return for the 2025-26 tax year.
Who Needs to Check?
HMRC warns that individuals may need to submit a return if they have started working for themselves, become a landlord, or received additional earnings outside their main job. This follows a surge in people taking on second jobs, selling items online, or renting out spare rooms to cope with the rising cost of living.
The online checker covers the tax year from April 6, 2025, to April 5, 2026, and asks users a series of questions about their income and personal circumstances. The tool does not share personal information with HMRC and is free to use.
Key Groups at Risk
People may need to complete a Self Assessment return if they are:
- Newly self-employed
- A landlord
- A new partner in a business partnership
- Earning more than £1,000 from a side hustle
The tax authority has particularly drawn attention to those who earn income from online sales or renting out parts of their property. Current rules allow people to earn up to £1,000 per year from self-employed work before potentially needing to register for Self Assessment under the trading allowance regulations.
Who Is Affected?
Those potentially affected include individuals regularly selling goods online via platforms such as eBay, Vinted, Etsy, and Depop, especially if they are buying items specifically to resell for profit rather than simply clearing out unwanted possessions. Other groups who may be impacted include dog walkers, babysitters, cleaners, gardeners, delivery drivers, taxi drivers, tutors, fitness instructors, and tradespeople carrying out work outside their main employment.
The rules could also apply to those generating extra income through social media and digital platforms, including influencers, YouTubers, content creators, and those earning commission via affiliate marketing. Freelancers working in graphic design, photography, writing, web design, or consultancy alongside a salaried job may also need to register.
Property Owners
Property owners may need to submit a return if they are receiving rental income from a buy-to-let property, holiday let, or by renting out rooms in their home beyond the tax-free allowance thresholds.
Consequences of Non-Compliance
Self Assessment is the system HMRC uses to gather Income Tax from people whose income is not automatically deducted via PAYE. Aside from the self-employed and property landlords, tax returns are generally needed for high earners with more complex finances, business partners, and certain individuals with investment income. Anyone who fails to register or file their returns by the deadline could face fines and interest charges.
HMRC has stated that the online tool will not share any personal information with the tax authority and can be used for free. The checker is accessible on the Government website and aims to help people swiftly determine whether they need to act before upcoming filing deadlines.
