Anyone earning extra income through a side hustle is being reminded by HMRC to check whether they need to register for Self Assessment.
As part of its Help for Hustles campaign, HMRC is encouraging people with additional sources of income to understand their tax responsibilities and ensure they meet the relevant reporting deadlines.
Many side hustles start as hobbies or ways to earn extra money alongside employment, but once income reaches certain levels, tax obligations may arise.
In most cases, individuals who earn more than £1,000 in gross income from self-employment or casual trading during the tax year may need to register for Self Assessment. The £1,000 threshold is known as the trading allowance, and exceeding it could mean that a tax return is required.
Anyone who needs to complete a Self Assessment tax return for the first time for the 2025/26 tax year should register with HMRC by 5 October 2026. Online tax returns must then be submitted, and any tax owed paid, by 31 January 2027.
HMRC has developed an online tool to help people determine whether they need to report income from a side hustle and whether Self Assessment applies to their circumstances.
Kevin Hubbard, HMRC's Director of Small Business and Individuals, said that while side hustles provide many people with a valuable source of additional income, it is important to understand when tax rules come into play. He encouraged anyone who is unsure to use the online checker available on GOV.UK.
Side hustles can take many forms, including selling goods online, creating digital content, freelance work, tutoring, pet sitting, crafting or providing services through online platforms. Although not everyone will need to pay tax, keeping accurate records of income and expenses throughout the year can make it much easier to establish whether a tax return is required.
For anyone earning additional income outside their main employment, taking a few minutes to check the rules now could help avoid unexpected tax bills, penalties or missed filing deadlines later.
