HMRC sends side hustle warning

26 Jun

HMRC is warning those earning extra income through a side hustle to check if they need to register for self assessment and file a tax return.

Side hustles can be any additional income stream, from online selling to content creation, from dog walking to property rental. It also includes gains or income received from cryptoassets.

Anyone who earns over the £1,000 threshold may need to register for self assessment and complete a tax return.

There is a checker tool on GOV.UK for those who aren't sure if they meet the criteria. If they do and are new to self assessment they will need to register to receive their Unique Taxpayer Reference.

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

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.'