Make it tax official . . .
Anyone who has turned the love for their hobby into a side hustle is being encouraged to ‘put a ring on it’ and make it official. Whether it’s making extra income from activities such as online content creation, dog walking or making handcrafted items to sell, HMRC has launched a new Help for Hustles campaign to assist people in understanding if they need to declare their earnings.
Anyone generating more than £1000 from their side hustle should check their tax obligations using HMRC’s new easy-to-use guide at:
taxhelpforhustles.campaign.gov.uk
The new guide covers five key areas to help people understand any tax obligations:
1. I’m buying or making things to sell
2. I’ve got a side gig
3. I work for myself doing multiple jobs
4. I’m a content creator or influencer
5. I rent out my property
If someone has earned more than £1,000 from their side hustle in a tax year, they may need to complete a Self Assessment tax return. Customers can check if they need to tell HMRC about additional income on GOV.UK.
This only applies to people who are trading or selling services. If someone is simply clearing out their unwanted items and putting them up for sale, they will not need to pay tax.
Undeclared income of more than £1,000 from side hustles form part of the hidden economy. HMRC is committed to reducing the tax gap, of which the hidden economy accounted for about £2.2 billion in 2022/23.