Side Hustlers Encouraged to File Tax Returns Early

• Individuals earning over £1,000 in extra income may be required to register for Self Assessment
• Filing early provides greater clarity on your tax position and allows more time for payment planning
• HMRC offers digital tools to make the filing process simple and efficient

HM Revenue and Customs (HMRC) is urging people earning additional income through side activities to determine whether they are required to register for Self Assessment—and, if necessary, to submit their tax returns as early as possible.

From online reselling and digital content creation to services like pet sitting or letting out property, anyone with supplementary income should assess their tax responsibilities and avoid the last-minute pressure of the January deadline.

The key threshold to keep in mind is £1,000. If an individual earns more than this amount in a single tax year from any side venture, they may need to register for Self Assessment and complete a tax return. This also applies to income or gains derived from cryptoassets.

Taxpayers who believe they might need to file a return for the 2024–2025 tax year can use HMRC’s online tool on GOV.UK to check. First-time filers must register to receive their Unique Taxpayer Reference (UTR) number before they can complete a return.

Practical and accessible guides for those with side hustles are available at: taxhelpforhustles.campaign.gov.uk.

Myrtle Lloyd, Director General for Customer Services at HMRC, commented:

“Whether you’re selling handmade goods online, producing digital content, or renting out property, it’s important to understand your tax responsibilities. If your earnings from such activities exceed £1,000, a Self Assessment return may be required.

Filing early gives you peace of mind—you’ll know exactly how much you owe and can budget accordingly, avoiding the pressure of the January deadline. Remember, filing your return does not mean you must pay straight away. You have until 31 January to make your payment.”

The deadline to file online Self Assessment tax returns and settle any tax owed for the 2024–2025 financial year is 31 January 2026.

Early action is especially vital for self-employed individuals or landlords with qualifying income over £50,000, as they will soon be required to adopt Making Tax Digital (MTD) for Income Tax starting from April 2026. This shift will involve maintaining digital records and submitting quarterly updates using approved software.

Further information about Self Assessment and how to file can be found at GOV.UK.

Notes to Editors

• A full overview of who needs to file a tax return and the available support resources can be found on GOV.UK.
• Individuals selling personal items occasionally and not as part of a business generally do not need to pay tax on such income.
• HMRC encourages those meeting the £50,000 MTD for Income Tax threshold to sign up for the testing programme now via GOV.UK. Tax agents can also register clients through the same portal.
• Cryptoassets and Taxation:
  • Any gains or income from cryptoassets must be included in the Self Assessment return.
  • Capital Gains Tax may apply when cryptoassets are sold, exchanged, or used for purchases, or even gifted.
  • Income Tax and National Insurance may also be due if cryptoassets were received as part of employment or as a result of income-generating activities (such as staking or lending).
  • For the 2024/25 tax year, the Self Assessment form will include specific sections for cryptoasset-related reporting, separate from other categories such as Capital Gains or Trusts.
  • Detailed guidance on this can be found by searching “tax when you sell cryptoassets” on GOV.UK.

According to research commissioned by HMRC and published in 2023, around one in ten UK residents participates in the hidden economy. Of these, approximately 65% are engaged in side hustles and many are unaware of the requirement to register for tax purposes.