HMRC takes aim at side hustles

HMRC is urging people earning extra income through side hustles to check whether they need to register for Self-Assessment, as the wedding season boosts demand for photographers, cake makers, content creators and other suppliers.

Anyone earning more than £1,000 a year from side hustles may need to declare their income. HMRC said the £1,000 trading allowance applies to total earnings across all side hustles, rather than each activity individually. It is encouraging taxpayers to use its free online checker to determine whether they need to file a tax return, though in our experience the results can be unreliable in many circumstances. New Self-Assessment customers for the 2025-26 tax year must register by 5 October 2026, with online returns and any tax due payable by 31 January 2027.

HMRC also stressed that not all additional income is taxable. Selling unwanted personal belongings generally does not need to be reported, but regularly selling goods for profit or providing paid services is likely to count as trading and may need to be declared.