HM Revenue and Customs (HMRC) has issued an urgent tax message to anyone who makes at least £1,000 of earnings from a ‘side hustle’.
Anyone who gains extra income outside of their regular job, such as renting out property, creating online content, or selling goods, will need to register for Self Assessment and file a tax return if their earnings are more than £1,000. Everyone in the UK has a tax-free trading allowance of £1,000 additional income outside of their primary employment, but if you go above this threshold you must inform HMRC.
The government is urging people to check now if they need to register for Self Assessment, and if they do to file their tax return “now”.
The deadline to submit a Self Assessment tax return to HMRC, and pay any tax owed, for the 2024 to 2025 tax year is January 31, 2026. While this is several months away, HMRC is urging people to file early to avoid the January deadline rush.
HMRC said: “Anyone earning extra income through a side hustle is being urged to check if they need to register for Self Assessment – and if so, file their tax return now.
“HMRC is encouraging those with additional income streams – from online selling and content creation to dog walking and property rental – to understand their tax obligations and get ahead of the January deadline rush.
“The £1,000 threshold is key: anyone who earns more than this from their side hustle in a tax year may need to register for Self Assessment and complete a tax return. This includes gains or income received from cryptoassets.”
If tax returns aren’t submitted on time you’ll be hit with a penalty fee of £100 for filing up to three months late, and this can increase even further if it’s later, or if you pay your tax bill late. You’ll also be charged interest on late payments.
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 start using Making Tax Digital for Income Tax from April 2026, which will require digital record-keeping and quarterly updates using compatible software.
Myrtle Lloyd, HMRC’s Director General for Customer Services, added: “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 January 31 to settle your tax bill.”
