Do I need to register a side hustle?

If you earn £1,000 or more from your endeavour, you need to let HMRC know about it. You can register as self-employed online through the HMRC website. The process is straightforward. Once you register, HMRC gives you a Unique Taxpayer Reference (UTR), which you need when you file your self-assessment tax return.

Do I need to register my side hustle?

Basically, if you run your own business – and it's not through a partnership or a limited company – the tax man designates you as a sole trader. As a sole trader, you need to register as such with HMRC. Each year, you tell HMRC how much income you have earned through the self-assessment tax return.

Do you have to declare side hustle?

Do I need to pay tax on my side-hustle income? Yes, if your side-hustle is run in such a way as to amount to a trading activity and that you make a profit above your available tax allowances. A side-hustle will be classed as a trading activity from a legal perspective if any of the nine 'badges of trade' are evident.

Will HMRC find out about my side hustle?

HMRC won't directly know about any earnings from a non-PAYE job / ``side hustle''. They do however have access to bank account information, so if they look they will be able to tell you have additional income.

How much can I earn without declaring to HMRC?

Currently, you need to file a self-assessment tax return if you earn over £1,000 in total from any side hustles such as trading goods, dog walking or gardening on the side, driving a taxi, or creating online content. But, in future, you'll be able to earn more before having to file a tax return.

How To Register As SELF EMPLOYED In 3 Easy Steps

How much can I earn from a hobby before paying taxes?

This happens when you have a hobby where you can sell your products or services and your income surpasses £1,000. At this point you have exceeded the Trading Allowance, as mentioned earlier, and you must now register for Self-Assessment.

Will HMRC know if I don't declare income?

Regardless of the reasons for failing to declare income, HMRC has extensive means to uncover undeclared and under reported income. Their methods have become increasingly sophisticated in recent years, leaving no stone unturned in their search.

How much can I sell on Vinted without paying tax?

If the money you make on Vinted over a year is less than what you paid for the items, you pay no tax. The only time that an individual item might be taxable is when you sell it for more than £6,000 and there is a profit from the sale (i.e. it sells for a higher price than you paid for it).

How to keep track of side hustle money?

Side hustle financial record-keeping options

If you're good with spreadsheets, you could create your own for free using Google Sheets or another option. Using bookkeeping software is a much better option, especially as it only costs about a tenner a month, which you can claim as an allowable tax expense.

Do I have to pay tax on selling second-hand items?

Do I still need to pay tax if I'm selling my old stuff? If you're genuinely selling your own possessions, it's unlikely you will need to declare your earnings and pay tax. If you're buying things for the sake of selling them at a profit, then you're likely 'trading' and you might owe tax on what you make.

At what point is a side hustle a business?

Keep in mind that the IRS is going to look at whether your activity is a business or a hobby. According to them, a “business” will have made a profit in three of the past five years.

Does HMRC check Vinted?

In general, selling personal items on Vinted is not taxed.

Even though your Vinted sales are generally not taxed, you still have to submit the HMRC reporting form if you meet the requirements.

How to avoid side hustle tax in the UK?

This only applies to people who are trading or selling services. If someone is simply clearing out their unwanted items and putting them up for sale, they will not need to pay tax. Undeclared income of more than £1,000 from side hustles form part of the hidden economy.

Do I need to register as a sole trader if I earn under $1000?

Registering as a sole trader

You can start trading straight away without registering. However, you must register for Self Assessment as a sole trader if you earn more than £1,000 in a tax year (from 6 April to 5 April). You can choose to register earlier.

What is the HMRC side hustle crackdown?

What Is HMRC's Side Hustle Crackdown? The HMRC side hustle crackdown targets underreported or undeclared income from side hustles and online sales. As of January 2024, platforms like Airbnb, Uber, and Etsy are required to report user earnings directly to HMRC.

How much can I sell online before paying taxes?

Selling goods, providing a service and creating online content sections have been updated. If your total income is more than the £1,000 trading allowance for the tax year (6 April to 5 April), you'll need to tell us about it. A link has been added to leave feedback about this guidance.

Does Gumtree report to HMRC?

From 1 January 2024, digital platforms such as Vinted, Gumtree, eBay, and Airbnb will be required to report seller data to HMRC. This will include the names of individual sellers and volume of their sales and is part of a clampdown by HMRC to 'bear down on tax evasion'.

What happens if you sell more than 30 items on Vinted?

On Vinted, particularly, reporting thresholds were tightened, and users who either do 30 sales per year or exceed £1,700 of gross sales over 365 days must now have their data reported with HMRC.

Is HMRC warning about side hustle tax?

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.

What is the HMRC side hustle tool?

However, the UK government has announced that a new online reporting tool is on the way by 2029. When it's live, you'll be able to use it to tell HMRC if you earn between £1,000 and £3,000 from side hustles – instead of having to do a Self Assessment return. This should be a bit less admin to save you time.

What side hustles make the most money?

Can HMRC see your bank account?

HMRC can access personal or business bank accounts, but only with reasonable justification. They may use Financial Institution Notices (FINs) or powers under the Direct Recovery of Debts to obtain bank data or recover tax owed, often without needing court or taxpayer approval.

How much can I earn without declaring income?

You usually get a tax-free Personal Allowance

For the 2025/26 tax year, the standard Personal Allowance is £12,570. Your Personal Allowance is reduced by £1 for every £2 of income you earn over £100,000. So you don't get any personal allowance if you earn over £125,140.

What triggers an HMRC tax investigation?

someone alerting HMRC to unusual activity in your accounts. noticeable inconsistencies between tax returns (e.g, a big fall in income from one year to the next) frequently filing tax returns late. your accounts not matching the industry norms.