With the rise of side hustles—from selling online and tutoring to freelancing, content creation, crypto trading, and dog walking—many people are topping up their income. But if your extra earnings exceed £1,000 a year, there’s something else you might need to add to your to-do list: filing a Self-Assessment Tax Return.
If you’re earning more than £1,000 from additional sources outside your main employment, you could be legally required to register for Self-Assessment by October and submit your Tax Return to HMRC by the following January.
Don’t wait for the deadline. Filing early has it’s advantages:
- Avoid the stress of the January rush
- Know what tax you owe sooner, so you can budget (or set up a payment plan)
- Get peace of mind by knowing your tax affairs are in order
Many people running side hustles or earning income outside of their employment simply don’t realise that tax rules apply, until it’s too late.
HMRC has announced plans for a simpler online platform to allow individuals earning up to £3,000 from side hustles to declare and pay tax without filing a full Self-Assessment return. While promising, this solution isn’t expected to be live until at least 2029.
Until then, the current rules remain in force. If you’re not sure whether you need to file—or want help staying compliant—give us a call on 01223 810100. We’ll guide you every step of the way.
