HMRC launches Help for Hustles campaign to help people earning extra income understand their tax obligations.
According to insight commissioned by HMRC and published in 2023, one in 10 people in the UK are operating in the hidden economy with 65% of these individuals most likely operating side hustles and largely unaware that they should be registered for tax.
Whether it’s making extra income from activities such as online content creation, dog walking, or making handcrafted items to sell, HMRC has launched a new Help for Hustles campaign to assist people in understanding if they need to declare their earnings.
Anyone generating more than £1,000 from their side hustle should check their tax obligations using HMRC’s new easy-to-use guide at taxhelpforhustles.campaign.gov.uk.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said:
“We know many people are turning their hobbies and interests into successful businesses and we’re here to help them understand their tax obligations.
“Nobody wants an unexpected tax bill, so anyone with a side hustle should check HMRC’s straightforward guide and make sure they’re getting their tax right.”
The new guide covers five key areas to help people understand any tax obligations:
- I’m buying or making things to sell
- I’ve got a side gig
- I work for myself doing multiple jobs
- I’m a content creator or influencer
- I rent out my property
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.
With around 100 members any business in Dorset can join Dorchester Chamber from business for £60p/a (no VAT).
