Love your side hustle? Time to make it tax official says HMRC

 

HM Revenue and Customs (HMRC) has launched its ‘Help for Hustles’ campaign to help people earning extra income understand their tax obligations.

With side hustles becoming increasingly popular—whether it’s creating content online, selling handmade goods, dog walking, or renting out property—HMRC is encouraging those who earn more than £1,000 a year from these activities to check if they need to declare their income.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said:

“Many people are turning their hobbies into successful businesses, and we’re here to help them understand their tax obligations. Nobody wants an unexpected tax bill, so anyone with a side hustle should check HMRC’s straightforward guide and make sure they’re getting their tax right.”

The Tax Help for Hustles guide, available on GOV.UK, provides clear advice on what counts as taxable income and how to stay on top of your tax responsibilities.

The guide covers five main areas:

• Selling goods: Making and selling items—whether clothing, crafts, or food—counts as trading if profits exceed £1,000.
• Side gigs and freelancing: Dog walking, tutoring, and delivery services are examples of side gigs that may require a Self Assessment tax return.
• Multiple jobs and self-employment: If you work for yourself in addition to a regular job, you may need to declare any additional earnings.
• Content creators and influencers: Sponsored posts, affiliate links, and paid collaborations all count as taxable income.
• Property rentals: Renting out a property or a holiday home could push your earnings above the £1,000 limit.

If someone earns more than £1,000 in a tax year, they may need to complete a Self Assessment tax return.

This does not apply to those simply selling unwanted personal items, but if you are trading or providing services, you must declare the income.

The hidden economy—undeclared income from side hustles—accounted for a £2.2 billion tax gap in 2022/23, HMRC has said.

For more information, visit taxhelpforhustles.campaign.gov.uk.