Anyone generating more than £1,000 from their side hustle should check their tax obligations using HMRC 's new easy-to-use guide at taxhelpforhustles.campaign.gov.uk.
How much can you earn from a side hustle without paying tax?
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. We'll update this page once the new reporting tool is ready to go.
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.
HMRC is encouraging anyone with a side hustle to check if they need to complete a Self Assessment tax return for the 2024 to 2025 tax year. If you earn more than £1,000 from additional income, you may need to register for Self Assessment.
Do I have to declare self-employed income under $3,000?
Earnings under £1,000: No tax is owed and no requirement to declare it. Earnings between £1,000 – £3,000: Tax may still apply on profits, but you can report the income using the 'simplified online service' rather than completing a full tax return.
What is the HMRC warning for people earning over 1000 from side hustles to avoid a 100 fine?
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.
Unlike traditional UK banks, Revolut does not directly share customer transaction data with HMRC unless HMRC specifically requests it. However, Revolut must comply with legal information requests from tax authorities, meaning HMRC can: Request account details if they suspect tax fraud.
How much can you earn in a second job before paying taxes?
Personal Allowance: In the UK, the personal allowance is £12,570 meaning you can earn up to this amount across all your income sources without paying tax.
You must report this income to HMRC, usually by 5 October following the end of the tax year in which you received it. If you forget or fail to do so, you are committing at best a civil offence and at worst a criminal offence, leaving you open to financial penalties or even imprisonment.
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 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.
The minimum income amount to file taxes depends on your filing status and age. For 2024, the minimum income for Single filing status for filers under age 65 is $14,600 . If your income is below that threshold, you generally do not need to file a federal tax return.
The tax exemption is automatic if you earn less than your threshold. Which means you do not need to do anything. You must complete a tax return if you earn more than your threshold. You can then opt into the scheme and claim your tax-free allowance.
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.
Revolut doesn't withhold any tax on your interest income earned. You have sole responsibility for the management of your legal obligations and tax affairs, including making any applicable filings and tax payments, and complying with any applicable laws and regulations.
Regardless of your IBAN, all Revolut investment products are provided by our European entity and must be declared as foreign accounts. This includes Stocks and ETFs, Flexible Accounts, Robo-Advisor, Commodities, and Crypto.
HMRC can find clues about undeclared income by looking at social media profiles. For example, if you frequently promote products or services on your social media channels, HMRC may investigate whether you are declaring this income.
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.
Do I have to tell HMRC if I earn more than $1000 in interest?
If HMRC have not sent you a bill or changed your code and you have bank interest over £1,000 (or £500 for higher rate tax payers), you need to contact HMRC and let them know the amount of bank interest you have so that any tax due can be collected.
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.
The way PAYE works means that you may have income tax deducted from your wages throughout the year, even if overall you earn less than the personal allowance. You can usually get any PAYE overpaid throughout the year back, as a tax refund. For the 2025/26 tax year, there are three main rates of income tax.
