Individuals earning outside of their main employment may need to register for Self-Assessment and submit a tax return.
HM Revenue & Customs (HMRC) has reminded taxpayers to check their position if they have generated more than £1,000 in untaxed income during the last financial year.
This applies to a wide range of income streams, such as:
- Online sales of handmade goods or second-hand items
- Rental income from property or rooms
- Social media monetisation (YouTube, TikTok, Instagram, etc.)
- Freelance work, consultancy, tutoring or pet services
- Cryptocurrency trading
If your total untaxed income has passed the £1,000 threshold, it is your responsibility to notify HMRC and comply with Self-Assessment requirements.
The advantages of filing early
Completing your tax return promptly provides:
- Early clarity on your tax liability
- Time to plan and budget, with payment not due until 31 January 2026
- Reduced pressure, avoiding the peak filing period in January
Filing early gives you control and peace of mind, ensuring no last-minute surprises.
Broader implications
These requirements are not limited to those with side businesses. Landlords, crypto investors and others earning outside PAYE must also comply.
In addition, sole traders and landlords with income exceeding £50,000 should begin preparing for the next stage of Making Tax Digital (MTD), due to be implemented in 2026. This will introduce quarterly reporting using digital accounting tools.