HMRC reminds side hustlers of their tax obligations
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Posted: Wed 12th Feb 2025
HM Revenue & Customs (HMRC) has launched a new campaign highlighting the tax requirements that people with side hustles may need to follow.
The 'Tax Help for Hustles' initiative is aimed at helping people making extra income from activities such as online content creation, dog walking and making handcrafted items to sell understand if they need to declare their earnings and pay tax.
According to research commissioned by HMRC in 2023, one in 10 people in the UK are operating in "the hidden economy", with 65% most likely running a side hustle and "largely unaware that they should be registered for tax".
The government department said the hidden economy accounted for around £2.2bn of unpaid tax in the 2022 to 2023 tax year.
If you have earned more than £1,000 from your side hustle in a tax year, you may need to complete a Self Assessment tax return and pay tax on the income.
HMRC's Angela MacDonald said:
"We know many people are turning their hobbies and interests into successful businesses and we're here to help them understand their tax obligations.
"Nobody wants an unexpected tax bill, so anyone with a side hustle should check HMRC's straightforward guide and make sure they're getting their tax right."
As part of new international rules, 31 January was the first annual deadline for online marketplaces, such as Amazon, Etsy, eBay and Airbnb, to report information about their users to HMRC.
They are required to submit the details of sellers who make more than than 30 sales of goods, and receive more than €2,000 (£1,700) for those sales in a tax year.
Relevant side hustle resources
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