If you have made more than £1,000 from a side hustle last year, you might need to tell HM Revenue & Customs (HMRC), and the earlier you do it, the better.

HMRC is now urging people with extra income to check if they need to register for Self-Assessment and file a tax return. That includes people making money from things like:

• Selling crafts or second-hand clothes online
• Renting out a room or a property
• Creating content on YouTube, TikTok or Instagram
• Dog walking, tutoring or freelancing
• Buying and selling crypto

A lot of people do not realise they have crossed the £1,000 mark, but if you have, it is your responsibility to register and get your tax sorted.

The benefits of getting ahead of the January Self-Assessment deadline

Most people leave it until the last minute, then panic when they realise they owe more tax than they thought.

If you file now, you:

• Find out what you owe nice and early
• Have until 31 January 2026 to pay it, giving you time to save or budget
• Avoid the rush when everyone else is scrambling to file

It is all about making life easier for yourself.

New threshold could mean fewer people need to file

There’s some good news for those with smaller side incomes.

While the £1,000 tax-free trading allowance isn’t changing, the Government has announced plans to raise the reporting threshold to £3,000.

This means that in future, if your total trading income (before expenses) is under £3,000, you may no longer need to file a full Self-Assessment tax return, even if you still owe a small amount of tax. HMRC may collect what’s owed in other ways, such as adjusting your PAYE tax code.

No official date has been announced yet, but if introduced, this change could mean:

• No more tax return admin for small earners
• Lower accountancy costs
• Less risk of missing filing deadlines

It’s a small but positive step towards simplifying tax for casual earners and side hustlers.

Is this just for side hustles?

No, it also includes landlords, people earning from crypto, and anyone else making extra income outside of PAYE.

If your income is over £50,000 as a sole trader or landlord, you will also need to get ready for Making Tax Digital (MTD) from 2026.

That means using accounting software and sending updates to HMRC four times a year, not just once.

If you are not sure whether this applies to you or if you just want to get it off your to-do list, speak to our team today for professional guidance.