HMRC has issued a warning to anyone in the UK who earns money through a side hustle to ensure compliance with tax responsibilities. A side hustle covers ways people make money outside their main job, such as selling clothes on Vinted or eBay, dog walking, delivery work, or tutoring.
£1,000 tax-free allowance
Everyone has a £1,000 tax-free allowance for side hustles. If earnings are less than £1,000 in a tax year (6 April to 5 April), there is no need to declare it to HMRC. However, as soon as earnings exceed £1,000, they must be declared by registering for Self Assessment as a sole trader.
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.”
How to register
People can use the tool on GOV.UK to flag earnings. It asks a few questions about how money is earned through the side hustle, and if a tax return is required, it explains how to register. New entrants to Self Assessment should register for the 2025 to 2026 tax year by 5 October 2026. They must file their online tax return and pay any tax due by 31 January 2027.
Multiple income streams
The £1,000 threshold covers all side hustle income combined. For example, someone earning £600 from wedding photography and £500 from social media posts would need to register as their total exceeds £1,000. Selling unwanted personal belongings, such as clearing out a wardrobe, does not usually need to be reported. But regularly selling goods for profit, or providing a service for payment, is likely to count as trading and may need to be declared.
