Side-Hustle Tax: HMRC’s £1,000 Reminder Before 5 October 2026

HMRC’s latest reminder is about total side-hustle income

In July 2026, HMRC reminded people earning from side activities — including making goods, providing services and creating content — to check whether they need to tell HMRC about the income. Its key practical point is that the £1,000 trading allowance applies to combined side-hustle income, rather than to each activity separately.¹

So £600 from photography and £500 from social-media work is £1,100 in total. It is the combined amount that should prompt a check of the reporting position.

The £1,000 figure is a check point, not a substitute for the facts

HMRC says someone who earns more than £1,000 from their side hustle in a tax year may need to complete a Self Assessment tax return. It points people to its online tool to check whether they need to report the income and, if they do, how to register.²

The nature of the activity matters too. Selling unwanted personal belongings does not usually need to be reported. Regularly selling goods for profit or providing a service for payment is more likely to count as trading and may need to be declared.³

The careful word is “may”. The right next step is to use the official checker or seek tailored advice where the position is unclear, rather than assume an online marketplace, a payment app or a small number of sales decides the tax treatment by itself.

The deadline for new Self Assessment entrants

For people who need to join Self Assessment for the 2025/26 tax year, HMRC’s July announcement gives these dates:

These dates are for the 2025/26 tax year. They do not mean everyone with extra income must file: the official eligibility check should come first.⁴

A simple records routine makes the check easier

Whether or not a return is ultimately needed, keep a simple, contemporaneous record of:

• each sale or fee received;
• business expenses and supporting evidence;
• the date and nature of the activity; and
• income across every side activity, rather than only one platform or customer.

That record makes it easier to answer the official tool accurately, understand whether income has passed the £1,000 level, and prepare a return if one is required. It also separates a real trading activity from a one-off clear-out of personal possessions.

Looking ahead to MTD for Income Tax

Side-hustle income is not automatically an MTD obligation. MTD for Income Tax applies in stages to people with qualifying income from self-employment and property above the relevant threshold; for the first mandatory group, that means more than £50,000 on the 2024/25 tax return.⁵

For a growing side business, clean records are still the sensible foundation. They support today’s Self Assessment decision and make any future move to compatible digital record keeping far less disruptive.