HMRC reminded side hustle earners on 21 July 2026 that anyone earning more than £1,000 a year from trading, including wedding suppliers and content creators, may need to register for Self Assessment. New entrants must register for the 2025-26 tax year by 5 October 2026.
TL;DR · LAST REVIEWED 21 July 2026
- HMRC issued the reminder on 21 July 2026 aimed at wedding season side hustles: stationery sellers, cake makers and content creators
- The £1,000 trading allowance covers all side hustle income combined across activities, not per activity
- New Self Assessment registrants for the 2025-26 tax year must register by 5 October 2026 and file and pay by 31 January 2027
- Selling unwanted personal belongings does not usually count as trading and does not need reporting
- HMRC research found one in ten people in the UK operate in the hidden economy, with 65% largely unaware they should be registered
KEY FACTS
- Trading allowance: £1,000 of gross trading income per tax year is tax free and needs no declaration
- The threshold applies to combined income: £600 from photography plus £500 from social posts exceeds it
- Registration deadline for new 2025-26 entrants: 5 October 2026
- Online filing and payment deadline: 31 January 2027
- HMRC's Help for Hustles campaign covers selling goods, services, content creation and property income
Who does the HMRC side hustle reminder apply to?
The reminder targets anyone earning more than £1,000 in gross trading income during a tax year, from wedding suppliers and hobby businesses to delivery drivers and online content creators. Below £1,000, the trading allowance means no declaration is needed at all.
The announcement, timed for peak wedding season, names the trades HMRC sees expanding fastest around weddings: stationery design, cake making, event filming and content creation. The department's Director of Small Business and Individuals, Kevin Hubbard, said the free checking tool on GOV.UK takes minutes and tells users exactly what to do, avoiding unexpected bills later. The distinction HMRC draws is between trading and disposal. Regularly making or buying items to sell at a profit, or charging for a service, is likely to count as trading once total receipts pass £1,000 in the tax year. Clearing out a wardrobe or selling unwanted personal belongings does not usually need reporting, however large the proceeds, because it is not trading. The department's case study features a wedding content creator from Livingston who shot almost 50 weddings in her first year and registered once bookings pushed her past the trading allowance, describing a return completed within an hour from a simple spreadsheet of invoices, outgoings, subscriptions and mileage.
What are the Self Assessment deadlines for side hustle income?
New entrants who passed the £1,000 threshold in the 2025-26 tax year must register for Self Assessment by 5 October 2026, then file the online return and pay any tax owed by 31 January 2027.
The registration deadline matters because penalties attach to late notification as well as late filing. Anyone unsure whether their extra income counts can use the checking tools HMRC links from the announcement, which walk through the source of the income and confirm whether registration is required and how to do it. An independent version is also available on this site: the free UK tax return checker asks up to nine questions and covers the trading allowance, Child Benefit charge and rental income rules. The scale of the compliance gap explains the campaign's persistence: HMRC research published in 2023 estimated one in ten people in the UK operate in the hidden economy, and 65% of those were largely unaware they should be registered for tax at all. Among reasons given for non-declaration, 35% said the income was too small to matter and 21% did not realise irregular or temporary income had to be declared. The trading allowance answers both misconceptions in a single rule: below £1,000 of combined gross trading receipts nothing needs declaring, and above it a return may be due regardless of how irregular the earnings were. The reverse also applies: anyone who no longer needs to file should tell HMRC promptly to avoid penalties for an unfiled return they were still expected to submit.
FREE TOOL Do you need a tax return? Check in under two minutes Nine quick questions to see if your side hustle income means registering for Self Assessment. Independent and free.
|
DISCLAIMER
This article is editorial information, not financial advice. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority. Figures were correct at the last review date shown above; verify current rates and rules with the primary sources listed below before acting.
Frequently asked questions
Do you pay tax on a side hustle under £1,000?
No. The trading allowance means gross trading income up to £1,000 in a tax year is tax free and does not need to be declared to HMRC. The allowance covers all trading activities combined, not £1,000 per activity.
When do you need to register for Self Assessment for 2025-26?
New entrants must register by 5 October 2026 for income earned in the tax year that ended 5 April 2026. The online return and any tax due must then be filed and paid by 31 January 2027.
Does selling old clothes or belongings count as a side hustle?
Usually not. Selling unwanted personal possessions is not trading and does not normally need reporting to HMRC. Buying or making items specifically to sell at a profit, or doing so regularly, is likely to count as trading.
Does the £1,000 threshold apply per platform or in total?
In total. All side hustle income is combined, so £600 from wedding photography and £500 from paid social media posts adds up to £1,100 and would require registration even though neither activity alone passes £1,000.
What happens if you no longer need to send a tax return?
Tell HMRC as soon as possible. If HMRC still expects a return and none is filed, penalties can apply even where no tax was due, so notifying the change avoids an automatic late filing penalty.
SOURCES
- HMRC press release: side hustle tax reminder, 21 July 2026 – accessed 21 July 2026
- GOV.UK: who must send a tax return – accessed 21 July 2026
- GOV.UK: check if you need to send a tax return – accessed 21 July 2026
