HMRC is continuing to urge ‘side hustlers’ to complete tax returns

HMRC is continuing to urge ‘side hustlers’ to complete tax returns

Under existing tax rules, as soon as you earn over £1,000 in a tax year through a ‘side hustle’ you will need to register with HMRC and file a self-assessment tax return.

A side hustle can come in various forms, from creating monetised content, dog walking, selling products via online platforms like Etsy, Amazon or Vinted for example.

You will also need to file a self-assessment if you have ‘gains’ for example on cryptocurrency assets. From this tax year HMRC has introduced dedicated sections for declaring this separately from capital gains, trusts and estates.

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.’

HMRC predicts that up to 65% of side hustlers are unaware that they should be registered for tax, and if done early anything owed can be spread across a number of months.

If you need assistance with your self-assessment tax return, please get in touch with us here at Kennedys Accounting – we will be pleased to assist – https://kennedysaccounting.uk/selling-online-is-changing-are-you-falling-into-the-tax-trap/