Side hustle? HMRC may want to know.
Extra income from selling, services, content or renting can count as trading. Here is what counts, how HMRC decides, and when you need to act.
HMRC is pushing side hustles up the agenda
HMRC has relaunched its Help for Hustles campaign in 2026, with a fresh push aimed at anyone earning extra income to check whether they need to tell it. The focus is on people selling online, providing services, creating content and renting out property.
HMRC also receives more and more information from digital platforms, so income that was never reported is easier for it to spot than many people assume.
Your main employer does not cover this. Tax on side income is not taken through your payslip. Telling HMRC is your responsibility.
What counts as a side hustle?
Any extra work or activity that earns you money outside your main job. HMRC groups the common ones into four areas.
Buying or making to sell
Items you buy, make or source in order to resell.
- Vinted, eBay, Etsy, Depop
- Handmade crafts and baking
- Reselling stock for profit
Providing a service
Being paid for your time or skills.
- Delivery and private hire driving
- Tutoring and fitness coaching
- Odd jobs, dog walking, beauty
Content creation
Income from what you post online.
- YouTube, TikTok, Instagram
- Podcasts and streaming
- Sponsorships and brand deals
Renting out property
Letting space you own or hold.
- Holiday lets and Airbnb
- Spare rooms and parking spaces
- Buy-to-let income
Usually not taxable: selling your own unwanted belongings, like old clothes, books or furniture. The difference is whether you are clearing out, or buying and making things to sell.
The trading allowance, per tax year
The £1,000 rule, explained
- It is one allowance, not one per hustle. Everything you earn from side activities is added together. £600 from photography plus £500 from social media is £1,100, which is over the line.
- It counts your income, not your profit. It is the total you receive, before expenses.
- Under £1,000 in total: you generally do not need to tell HMRC or pay tax on it.
- Over £1,000: you will usually need to register for Self Assessment as a sole trader and file a return.
HMRC has said a simpler way to report side income between £1,000 and £3,000 is planned, but it is not live yet. Until it is, a Self Assessment return is how you tell HMRC.
The badges of trade: how HMRC decides
There is no single test for whether you are trading. HMRC looks at the overall picture using a set of factors known as the badges of trade, set out in its Business Income Manual. No one badge decides it.
Profit motive
Are you doing it to make a profit, even if you have not made one yet?
Frequency
Is it a one-off sale, or something you repeat regularly?
Buying or making to sell
Did you buy or make the items specifically to resell them?
Organisation
Do you advertise, hold stock, have a shop page or a brand?
Time and effort
Do you spend real time sourcing, repairing or improving items before selling?
Similar activity
Do you already work in, or have experience of, the same line of business?
Other factors include how long you owned something before selling it, and how the purchase was financed.
From clear-out to trade
- Clearing outSelling your old clothes and books once
- Hobby salesOccasionally selling things you made
- Regular sellingBuying stock to resell most weeks
- TradingAdvertising, invoicing and repeat customers
The further along you are, the more likely HMRC will treat the income as trading.
Key dates for the 2025/26 tax year
If you earned over £1,000 from a side hustle between 6 April 2025 and 5 April 2026, these are the dates that matter.
- 6 April 2025The 2025/26 tax year begins
- 5 April 2026The tax year ends. Add up your side income
- 5 October 2026Last day to register for Self Assessment if you are new
- 31 January 2027File your return online and pay any tax due
Missed a year, or only just realised? Coming forward early is generally easier than waiting for HMRC to get in touch. We can help you register, catch up and put things right.
Side hustle tax, handled from £20 a month
- We check whether you need to register, and do it for you
- Your return prepared and filed on time
- Your income and expenses reviewed so you only pay what you owe
- A forecast of your tax bill, and WhatsApp support when you have questions
from £20 a month
Our lowest rate. Your first 2 months are free, with no upfront cost.
Side hustle questions
I have a job and pay tax through PAYE. Does that cover my side hustle?
No. Your employer only taxes your wages. Income from a side hustle is not on your payslip, so you are responsible for telling HMRC about it.
Do I get £1,000 for each side hustle?
No. There is a single £1,000 trading allowance per tax year, and income from all your different side hustles counts towards it.
What if I only just went over £1,000?
You will usually still need to register and report it. Depending on your expenses, there may be little or no tax to pay, but HMRC still needs to be told. We can work it out with you.
Do I have to declare things I sell on Vinted or eBay?
Not if you are just selling your own unwanted belongings. If you regularly buy or make items to sell on, HMRC is likely to treat that as trading.
What if I did not declare side income in earlier years?
Get in touch. Dealing with it early is generally simpler than waiting for HMRC to find it. We can help you work out what is owed and put it right.
This page is general information, not personal tax advice. It reflects the position at October 2026, so please check GOV.UK or speak to us about your own circumstances.