HMRC WARNS SIDE HUSTLERS TO REGISTER FOR TAX ABOVE £1,000 THRESHOLD

HM Revenue and Customs has launched a campaign urging millions of people earning money from side hustles to check whether their income exceeds the £1,000 tax threshold. Anyone earning more than £1,000 a year from all side hustles combined may need to register for Self Assessment and declare their earnings, HMRC stated. The campaign covers various income sources including selling handmade goods, baking cakes, influencing on social media and providing wedding-related services. Kevin Hubbard, HMRC's Director of Small Business & Individuals, said the taxman wants to make understanding tax responsibilities "as straightforward as possible".

HMRC used Lianna Dickson as a case study to illustrate the issue. Dickson, from Livingston, launched a wedding content creation business called Captured By Fifteen after her own wedding in 2024, when she regretted not hiring someone to capture behind-the-scenes moments. Her business films couples' wedding days using a smartphone and delivers edited highlights within 24 hours. Within her first year, Dickson covered almost 50 weddings, with her income exceeding HMRC's £1,000 trading allowance. Dickson said she found registering for Self Assessment straightforward after reading information on the HMRC and GOV.UK websites and keeping detailed financial records.

Dickson is currently on maternity leave from her role in influencer marketing whilst running the wedding content business. She said completing her tax return took approximately one hour. Her experience demonstrates the speed at which side hustles can generate income exceeding the tax threshold, particularly in seasonal sectors such as weddings.