Side hustlers urged to get tax returns sorted

HM Revenue and Customs (HMRC) is urging anyone earning extra cash through a side hustle to check if they need to file a tax return.

Those earning additional income streams – from things like online selling, content creation, dog walking and property rental – are being asked to understand their tax
obligations and get ahead of the January deadline rush.

HMRC says the £1,000 threshold is key - with anyone who earns more than this from a side hustle in a tax year likely to need to register for Self Assessment and complete a tax return.

This includes gains or income received from cryptoassets.

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Checker

Anyone who thinks they may need to complete a tax return for the 2024 to 2025 tax year can use the checker tool on GOV.UK to find out.

New entrants to Self Assessment must register to receive their Unique Taxpayer Reference.

Guides for side hustlers can be found at taxhelpforhustles.campaign.gov.uk.

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Myrtle Lloyd, HMRC's Director General for Customer Services, said: "Whether you are selling handmade crafts online, creating digital content, or renting out property,
understanding your tax obligations is essential.

"If you earn more than £1,000 from these activities, you may need to complete a Self Assessment tax return.

"Filing early puts you in control – you will know exactly what you owe, can plan your payments, and avoid the stress of the January rush.

"You don't need to pay immediately when you file – you have until 31 January to settle your tax bill."

The deadline to submit a Self Assessment tax return online and pay any tax owed for the 2024 to 2025 tax year is 31 January 2026.

HMRC says early preparation is particularly important for sole traders or landlords with a qualifying income over £50,000, as they will also need to get ready to start using Making Tax Digital (MTD) for Income Tax from April 2026.

This will require digital record-keeping and quarterly updates using compatible software.