Many people are taking on a side hustle to make ends meet. This can take various forms, such as selling items online, providing services or creating content.
You may need to tell HMRC about your income if your trading income (from all sources including any other self-employments) is more than £1,000. The £1,000 limit is for all trading income – not for each source. You may also need to sell an item and make a capital gain. Normal tax rules apply – there are no special rules for side hustles.
Tax will be payable if your total taxable income from all sources exceeds your personal allowance (set at £12,570 for 2026/27, abating once income reaches £100,000).
Here we look at some popular side hustles and see whether you need to tell HMRC about them.
Selling clothes on Vinted
Where a person simply sells their old clothes on Vinted for less than they paid for them, they do not need to tell HMRC about the income.
However, if they buy second-hand clothes with a view to selling them for a profit, they will need to tell HMRC once their total trading income from all sources exceeds £1,000. Remember, this is income before deducting expenses.
If the income is less than £1,000, it is covered by the trading allowance, and there is no need to tell HMRC.
Tax will be payable on the profit. If expenses are less than £1,000, the trading allowance can be deducted instead.
Providing services
A person may earn extra money by providing services, such as tutoring or gardening services.
Here, HMRC must be told once the income from providing the services reaches £1,000. Tax is payable on the profit after deducting expenses or the £1,000 trading allowance if this is more beneficial.
Selling household items
Normally, it will not be necessary to tell HMRC if you make money from selling unwanted furniture and household items. However, if an item such as a painting or an antique is sold for more than £6,000, you may need to tell HMRC and pay capital gains tax if you have made a gain. Special rules apply which cap the chargeable gain.
These rules do not apply to private cars and assets with an expected lifespan of less than 50 years.
Content creation
Content creators may earn money from reviewing items online. They may also be gifted items to promote a brand. When working out the total income from content creation, it is not enough to only include cash payments – the value of gifted items must also be taken into account.
Where the total income (before deducting expenses) exceeds £1,000, HMRC must be told. The profit is taxable. When calculating the profit, the £1,000 trading allowance can be deducted instead of actual expenses where this gives a better result.
More than one side hustle
If you have more than one side hustle, you will need to add together the income from each source to see if it exceeds the £1,000 trading allowance. Remember to include income from any self-employments too.
Remember, digital platforms provide income details to HMRC.
Fill in a tax return
If you need to tell HMRC about your side hustle, you will need to register for Self-Assessment if you are not already registered and file the return online by midnight on 31 January after the end of the tax year to which it relates.
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