With more people in the UK taking on side hustles, from Etsy shops and online tutoring to freelance work and Airbnb rentals, it’s important to understand when extra income crosses the line into taxable territory.
Do I need to tell HMRC about my side hustle?
If you’re earning more than £1,000 per year from self-employment or trading (known as the trading allowance), you’re legally required to register for Self Assessment and report your income.
What if I have a full-time job?
Even if you’re already paying tax via PAYE, any additional income outside your employment may still be taxable—and you’ll need to submit a Self Assessment tax return to declare it.
Can I deduct expenses?
Yes. If you’re running a small business or side hustle, you can often claim business-related expenses like materials, marketing, or software. This could reduce your tax bill significantly.
What happens if I don’t declare it?
HMRC uses data from online platforms like eBay, Etsy, and Airbnb. If they spot undeclared income, you could face penalties and interest—even for honest mistakes.
How can Lucas Prestige Accountants help?
We’ll guide you through registration, expenses, and reporting—ensuring full compliance while making the most of any reliefs and allowances you’re entitled to.
📞 Need help managing your side hustle income?
Contact us today.