HMRC sends side hustle warning

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.’

Inter­net link: HMRC