Help for hustles
Understanding the tax rules for side hustles
From online selling and tutoring, to delivery work and dog walking, there are lots of ways you might make money outside your main job. But did you realise there are tax rules for side hustles that everyone has to follow? Here’s what you need to know.
Made more than £1,000 from your side hustles?
Whether you get cash in hand or money paid straight to your bank account, you’ll need to tell HMRC so you can avoid any tax surprises.
We’re talking about the total income from all your side hustles between 6 April 2024 and 5 April 2025.
If you’re just selling unwanted personal belongings from time to time, you probably don’t need to tell HMRC but it’s a good idea to check to make sure.
Not sure if this applies to you?
Choose your side hustle below
to learn more
Selling things
What you need to know if you make or buy items to sell – including online selling tax rules
Providing a service
Understand the tax rules for delivery driving, tutoring, and other service work
Creating content
From sponsored posts to brand partnerships, learn the tax rules content creators need to follow
Why it’s important to follow the tax rules for side hustles
It’s your responsibility to tell HMRC about your side hustle income when you need to. If not, there may be consequences such as unexpected tax bills and penalties.
Questions answered
I have a main job and get paid through PAYE – doesn’t any tax I owe from side hustles get sorted through that automatically?
No. It’s your responsibility to tell HMRC about money you make on the side, not your main employer’s. Income from side hustles isn’t included on your payslip. If you don’t tell HMRC about those extra earnings you might be given a penalty.
What if I get a payslip for work I do as a side hustle, for example if I pick up evening bar shifts on top of my main job?
If you get a payslip, your tax should already be sorted out for you, so you don’t need to tell us about it through Self Assessment. But keep in mind, you will need to tell HMRC if you think you have overpaid or underpaid tax on any payslips. It’s slightly different if you already complete Self Assessment tax returns but all you need to do is show any tax that has already been deducted from payslips (through PAYE) on your tax return.
Can I earn up to £1,000 tax-free for each different side hustle I do?
No – you have a single £1,000 tax-free allowance (for each tax year) and anything you earn from different types of side hustles all counts towards this.
For example, if you earn £800 from content creation and £500 selling crafts online, that adds up to £1,300. You would need to tell HMRC as it’s above the £1,000 allowance.
What happens if I don’t register for Self Assessment and pay tax on my side hustle income when I should?
If we find that you needed to pay tax on your income, but you didn’t tell us about it, you may be given a penalty. HMRC also charges interest on any late payment of tax – so the longer you put off paying, the more you may owe. You might also get penalties if you don’t pay your tax on time.
Should I keep records of what money I make from side hustles?
Absolutely. It’s your responsibility to keep full and accurate records of all sales, income and business expenses – even if you use a tax agent or accountant. You’ll need this information to complete your tax returns properly. Read more about keeping your pay and tax records.
Can I use a tax agent or accountant to help?
You can appoint someone to deal with HMRC on your behalf like a friend, relative or a tax agent such as an accountant or bookkeeper.
What if I didn’t pay tax on my side hustle income from previous years?
It’s really important to stay on top of your tax affairs – make sure you pay what you owe as soon as you can and talk to us as soon as possible if you haven’t paid for previous tax years. Find out what you need to do if you have not told HMRC about income.
We’re here to help people get on the right track with their taxes and avoid any penalties. Our support services can help find a manageable way to help get your tax affairs sorted out. For example, if you cannot pay your tax bill in full, you may be able to set up a payment plan for you to pay in instalments. This is called a ‘Time to Pay’ arrangement.
We will always work to resolve any issues and find a solution.
I heard that I don’t need to do anything until I’m earning over £3,000?
That’s not true. 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.
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. But for now, check if you need to tell HMRC about your income for all the information you need.
Made money from side hustles? Check if you need to tell us
Use our checker tool to find out by answering some quick questions. It’s anonymous and usually takes just a few minutes.
Help and support
If you need more support, just ask HMRC online. We also offer extra support if you have a health condition or personal circumstances that make it difficult to contact HMRC.
Download the HMRC app
It’s the quick and easy way to be ‘on it’ when it comes to managing tax, National Insurance and benefits. Find out more about the HMRC app on GOV.UK
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