Do you need to pay tax on your side hustle?

Many people have turned a hobby into a side hustle. If that’s you, it’s worth checking whether you need to pay tax on the money you earn.

With wedding season in full swing, some people earn extra income by designing wedding stationery, filming first dances, baking cakes, or offering other creative services.

If you earn more than £1,000 from your side hustle in a tax year, you may need to register for Self Assessment, complete a tax return, and pay tax on your profits.

Remember, the £1,000 trading allowance covers all your side hustle income. If you have more than one source of trading income, you must add them together before you check whether you’ve gone over the limit.

In most cases, you don’t need to tell HMRC about money from selling unwanted personal items. However, if you make or buy goods to sell for a profit, or you provide services for payment, HMRC is likely to treat this as trading.

Not sure whether your side hustle counts as taxable income? Get in touch with us today. We’ll explain what the rules mean for you and help you meet your tax responsibilities with confidence.