- People earning from side hustles, such as selling on Vinted or running a small online business, are being advised to understand their tax obligations.
- A side hustle is distinct from a second job, and if earnings exceed the £1,000 annual trading allowance, individuals may need to register for self-assessment.
- The £1,000 allowance applies to total income from all side hustles before expenses, and exceeding it does not automatically mean tax is due, depending on overall income, expenses and tax-free allowances.
- HMRC provides an online checker to clarify tax responsibilities, and there are deadlines in place for self-assessment registration.
- It comes after the government announced plans in March 2025 to increase the self-assessment reporting threshold for trading income to £3,000. However, this change has not come into force and will not increase the tax-free trading allowance.
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