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

If you earn more than £1,000 from your hobby, you will need to register for self-assessment and declare your income to HMRC.

How much can you earn from a hobby before paying tax in the UK?

How much can I make through my hobby before I have to pay tax? If you make any money through a hobby, then you're allowed to earn up to £1,000 each tax year without being taxed. You'll also not be subject to National Insurance (NI) contributions on these earnings.

How much can I earn on a side hustle before paying taxes?

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.

Is HMRC warning about side hustle taxes?

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.

How much can you sell on Etsy before paying tax in the UK?

If you had sales of less than £1,000 a year with Etsy you do not need to do anything. HMRC lets you earn £1,000 a year through websites like Etsy without worrying about income tax. If you had sales of more than £1,000 a year with Etsy, you need to submit a tax return. This doesn't necessarily mean you need to pay tax.

How to Determine a Hobby vs Business From a Tax Professional

Does HMRC check Etsy?

As of 1 January 2024, online marketplaces like eBay, Etsy, Vinted, and Depop are required to report seller income to HM Revenue & Customs (HMRC) if you meet certain thresholds. This isn't a new tax, but a beefed-up way for HMRC to ensure everyone's paying what they owe.

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 much can you earn without declaring the UK?

The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on.

What side hustles make the most money?

Can HMRC see undeclared income?

Voluntary Disclosure

HMRC learns about undeclared income when individuals and businesses come forward themselves to own up to their tax avoidance efforts.

How much can I earn self-employed before declaring?

The exemption is automatic and if your self-employed income is £1,000 or less, you do not need to tell HMRC or file a tax return.

Do hobby breeders pay taxes in the UK?

Yes, income from dog breeding is taxable. This includes money earned from selling puppies, adult dogs, and even stud fees. Breeders must declare this income through a self-assessment, and if the turnover exceeds the VAT threshold, they may also need to register for VAT (and file VAT returns).

What is the new tax law for side hustles?

Despite what online articles are suggesting, there is no new 'side hustle tax'. Instead, from 1 January 2024, new requirements have been introduced relating to the reporting between online platforms and HMRC.

What is the maximum hobby income?

There is no maximum amount set for hobby income. The IRS just considers it regular income, and it's added on top of whatever other income you have. You cannot take any deductions for it, other than your standard deduction.

How much can I sell on eBay without paying tax in the UK?

The £1,000 Trading Allowance

It also covers earnings from online platforms like eBay, Depop, or Facebook Marketplace. This allowance applies to income from casual sales, not regular or planned business activities. If you make more than £1,000, you must report your income to HMRC and may need to pay tax.

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'.

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 declare side hustle income?

Paying tax on your side hustle income is different from the way you normally pay tax on your full-time salary. This time, you'll need to submit a Self Assessment tax return. If you're submitting your first tax return, you'll need to register for Self Assessment (self-employed).

Can you make a living off Vinted?

Vinted is more than just a platform for selling unwanted clothes — it's a legitimate way for people worldwide to generate extra income. In 2025, reselling fashion has become a booming trend, with active Vinted sellers often earning more than minimum wages in some countries.

How to avoid Etsy tax in the UK?

If you're employed and trade on Etsy as a side business, you'll only need to pay tax if your total income from sales exceeds the £1,000 trading allowance. Once your earnings exceed that allowance, you'll need to complete a self-assessment as you'll be viewed as both employed and self-employed.

How much can you sell online before paying tax in the UK?

There is a Trading Allowance you can claim that allows you to earn up to £1,000 a year from self-employment without having to pay tax or register as self-employed. But if you go over that £1,000 threshold, you will need to register with HMRC as self-employed and submit a self-assessment tax return.

Do I have to declare casual income?

If you have casual and/or miscellaneous income above £1,000 then you should include the income after deducting the trading allowance in box 17 on SA100. Please note that if you claim universal credit (UC) then you need to report your actual income and expenses and ignore the trading allowance for UC purposes.

What side hustles are tax-free?

There is no tax to pay if your side-hustle is a non-profitable hobby. The badges of trade are as follows: Profit motive: are you buying and selling goods or services to make a profit? Frequency and number of transactions: are you selling a number of items or it is just the odd one-off?

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.

Is HMRC warning about side hustle tax?

If you're earning over £1,000 from side hustles, you'll still need to tell HMRC. At the moment, you tell HMRC by doing a Self Assessment tax return. However, the UK government has announced that a new online reporting tool is on the way by 2029.