Those who have turned their hobby into a side hustle are being reminded by HMRC that their income from these activities may be taxable.
With wedding season in full swing, some may be making some extra income from selling wedding stationery, filming a first dance or cake-making.
Tax rules mean that if you earn more than £1,000 from your side hustle in a tax year, you may need to complete a Self Assessment tax return and pay tax.
The £1,000 threshold is a combined total. A person that has multiple sources of side hustle income would need to add the earnings of each source of income together before determining whether their earnings exceeded the threshold.
Selling unwanted items is unlikely to need reporting to HMRC, however selling goods for a profit, or providing a service for payment is likely to be considered trading and may need to be declared.
If you’d like help to know whether you need to pay tax on your side hustle, please get in touch. We’d be happy to help you.
For Small to Medium-Sized Enterprises (SMEs), the issue of late payments can mean the difference between survival or liquidation. The Department for Business & Trade estimates it costs the economy £11 billion annually, forcing 38 businesses to close their doors every day.
Manufacturers, importers, wholesalers and retailers are being warned that significant regulatory change is coming under the Deposit Return Scheme (DRS).
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