HM Revenue & Customs is reminding people across the UK to check if they need to register for self assessment and declare their income from side hustles. The warning targets those earning more than £1,000 from activities such as content creating.
Whether payment is received in cash or directly into a bank account, individuals must inform HMRC to avoid unexpected tax bills and penalties. It is the individual's responsibility to notify HMRC when required.
£1,000 threshold includes all side hustle income
HMRC stated on the official government website: "The £1,000 threshold covers all side hustle income combined – so someone earning £600 from wedding photography and £500 from social media posts would need to register as their total exceeds £1,000."
Not all extra income is taxable. Selling unwanted personal belongings, such as clearing out a wardrobe, does not usually need to be reported. Regularly selling goods for profit or providing a service for payment is likely to count as trading and may need to be declared.
Hidden economy and registration deadlines
According to HMRC research published in 2023, one in ten people in the UK are operating in the hidden economy, with 65% of these individuals largely unaware they should be registered for tax.
HMRC's Director of Small Business & Individuals Kevin Hubbard 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."
Hubbard added: "You can check if you need to do 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."
Registration and filing deadlines
New entrants to self assessment should register for the 2025 to 2026 tax year by October 5 2026. They must file their online tax return and pay any tax due by January 31 2027.
A free online tool on GOV.UK can help people earning extra money check if and when they need to report their additional income.
Examples of service side hustles include: delivering food or parcels, gardening and repairs, babysitting or childminding, dog walking or pet sitting, tutoring, cleaning, hiring out equipment, renting out parking spaces or a garage, and taxi driving or ridesharing.
