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.

Sources

1. HMRC, Say “I do” to getting your side hustle tax right, 21 July 2026.
2. HMRC, Say “I do” to getting your side hustle tax right, 21 July 2026.
3. HMRC, Check if you need to tell HMRC about additional income, accessed 6 September 2026.
4. HMRC, Say “I do” to getting your side hustle tax right, 21 July 2026.
5. HMRC, Before you use this guide: when to start using MTD for Income Tax, accessed 6 September 2026.