If someone has earned more than £1,000 from their side hustle in a tax year, they may need to complete a Self Assessment tax return. Customers can check if they need to tell HMRC about additional income on GOV.UK.

This only applies to people who are trading or selling services. If someone is simply clearing out their unwanted items and putting them up for sale, they will not need to pay tax.

Undeclared income of more than £1,000 from side hustles form part of the hidden economy. HMRC is committed to reducing the tax gap, of which the hidden economy accounted for about £2.2 billion in the 2022 to 2023 tax year.

The new guide covers five key areas to help people understand any tax obligations:

1. I’m buying or making things to sell
2. I’ve got a side gig
3. I work for myself doing multiple jobs
4. I’m a content creator or influencer
5. I rent out my property
   

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   Taxation Planning and Accountancy Advice