Side Hustles

Key points

• Whether you sell products online, freelance or earn money from a hobby, your extra income may need to be reported to HMRC. Depending on your circumstances, you may need to register for Self Assessment and pay tax on your profits.
• The £1,000 trading allowance can help in some situations, but it does not mean every type of extra income is automatically tax-free.
• The solution is simple: keep track of your income and expenses, understand your reporting obligations and check whether you need to declare your earnings.
• Getting your tax obligations right from the start can help you avoid unexpected bills, penalties and unnecessary stress.