If you earn extra income alongside your main job or business — whether that’s selling online, creating digital content, renting out property, or even walking dogs — it’s important to know when the tax rules apply. HMRC are urging anyone with a “side hustle” to check whether they need to submit a Self Assessment tax return for the 2024–25 tax year.
The £1,000 Threshold
The key figure to remember is £1,000.
If your total side income in a tax year is more than this, you may need to:
- Register for Self Assessment
- Complete an annual tax return
- Pay any tax and National Insurance due
This £1,000 limit applies to all additional income combined, whether it’s from:
- Selling goods or services online
- Running a part-time business from home
- Social media income
- Freelance or gig work
Why Acting Early Helps
You don’t need to wait until the January deadline to file your tax return. Submitting it early has benefits:
- Peace of mind — you’ll know exactly how much tax you owe
- Better cashflow — you can plan ahead or spread payments
- Avoid last-minute stress — no risk of missing the deadline
The final date to submit and pay for the 5th April tax year is 31st January, but HMRC encourages people to file well before then.
Don’t Risk Penalties
If you don’t register or file when you should, HMRC can charge penalties and interest. Even unintentional mistakes can lead to extra costs.
We can help you check if you need to register, file your return, and make sure everything is correct. Whether it’s a small side gig or a growing business, we’ll keep you compliant and stress-free.
Call us today to get started.
