HMRC sends £1,000 tax warning to side hustlers across the UK

As the busy summer wedding season gets underway, the tax authority is urging anyone making extra money from a side hustle to check whether they need to register for Self Assessment.

The key figure is £1,000.

If your total income from all your side hustles is more than £1,000 during the tax year, you may need to tell HMRC and complete a Self Assessment tax return.

Kevin Hubbard, HMRC's Director of Small Business & Individuals, said: "For many people, a side hustle is a valuable source of extra income."

He added: "If you're earning more than £1,000 a year from your side hustle it's important to understand your tax responsibilities, and HMRC wants to make that as straightforward as possible."

He urged people not to leave it until the last minute.

He said: "You can check if you need to do a Self Assessment tax return by using the tool on GOV.UK . It takes minutes to use, tells you exactly what you need to do and means no unexpected tax bills later."

The £1,000 limit applies to all your side hustle income combined, not each job separately.

That means someone who earns £600 photographing weddings and £500 from sponsored social media posts has earned £1,100 in total and may need to register with HMRC.

The reminder covers a wide range of activities, including:

• Wedding photographers and videographers
• Cake makers and bakers
• People selling handmade products
• Influencers and content creators
• Fitness instructors and delivery drivers
• Anyone providing paid services alongside their main job

However, HMRC stressed that not all extra income is taxable. Selling unwanted personal belongings, such as clothes or household items during a clear-out, will not usually need to be declared. But regularly buying, making or selling items for profit is likely to count as trading.

Anyone who needs to file a Self Assessment return for the 2025-26 tax year must register by 5 October 2026, before submitting their online tax return and paying any tax owed by 31 January 2027.

One person who has already gone through the process is wedding content creator Lianna Dickson, who launched her business after her own wedding.

She said: "As soon as I started booking in a number of weddings I knew this was going to be a decent amount of extra money."

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After checking the guidance online, she realised she had crossed the £1,000 threshold.

"Once I realised my income was over the £1,000 trading allowance, I knew I'd need to complete a Self Assessment tax return. Everything online was super easy to understand."

She added: "I had my tax return done within the hour. It was so much easier than I thought it would be."

Her advice to anyone turning a hobby into a business is simple.

"Just keep track of everything and speak to someone who understands the process - or look up videos of someone explaining it if you struggle with just reading things."

The reminder comes after HMRC research found that one in 10 people in the UK are operating in the hidden economy, with 65% largely unaware they should be registered for tax.

For anyone earning extra money on the side, HMRC's message is clear: don't assume your income is too small to matter. Checking now could help you avoid unexpected tax bills or penalties later.