The government has announced changes that could be good news if you have a side hustle. Whether you make extra money through eBay sales, dog walking, or creating content online, the rules are shifting, particularly when it comes to side hustle tax.
“We are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit.”
But when it comes to tax, there’s always some fine print. Not needing to file a tax return doesn’t mean you won’t have tax to pay. Understanding side hustle tax is essential as there are two allowances of £1,000 each, which apply to trading and property income. Any side hustle income above this level is likely to be taxable, so being aware of your side hustle tax obligations is crucial.
Here’s what’s changing: the Income Tax self-assessment reporting threshold for trading income will rise from £1,000 to £3,000. This hasn’t come into effect yet, but the plan is clear, providing more clarity around side hustle tax requirements.
HMRC expects 300,000 people will no longer need to file a tax return. However, around 210,000 of them may still need to pay tax. To make this easier, HMRC is preparing a new online service for people to pay what they owe without filing a full return.