HMRC: Say ‘I do’ to getting your side hustle tax right

  • Wedding season is here – and so is a reminder that income from side hustles may be taxable
  • Anyone earning more than £1,000 may need to register for Self Assessment and declare their income to HM Revenue and Customs (HMRC)
  • free online tool can help people earning extra money check if and when they need to report their additional income

The invitations are out, the venues are booked and the flowers are ordered – but for wedding suppliers who have turned their hobby into a side hustle, there is one more item on the to-do list: checking their tax obligations.

As wedding season gets underway, HMRC is reminding anyone earning extra income from activities like selling wedding stationery, filming the first dance or cake-making, that they will need to tell HMRC if they earn more than £1,000.

HMRC’s Help for Hustles campaign is here to help side hustlers get their tax right, quickly and easily – whether that’s wedding suppliers, parents earning from a hobby business or content creators making money from posting about the latest trends online.

Kevin Hubbard, HMRC’s Director of Small Business & Individuals, said: “For many people, a side hustle is a valuable source of extra income. If you’re earning more than £1,000 a year from your side hustle it’s important to understand your tax responsibilities, and HMRC wants to make that as straightforward as possible.

“You can check if you need to do a Self Assessment tax return by using the tool on GOV.UK. It takes minutes to use, tells you exactly what you need to do and means no unexpected tax bills later.”

If someone has earned more than £1,000 from their side hustle in a tax year, they may need to complete a Self Assessment tax return.

They can use the ‘Where is your additional income from?’ tool on GOV.UK. It takes a few minutes to complete and, if a tax return is required, it will explain how to register.

New entrants to Self Assessment should register for the 2025 to 2026 tax year by 5 October 2026.They must file their online tax return and pay any tax due by 31 January 2027.

The £1,000 threshold covers all side hustle income combined – so someone earning £600 from wedding photography and £500 from social media posts would need to register as their total exceeds £1,000.

Not all extra income is taxable. Selling unwanted personal belongings – such as clearing out a wardrobe – does not usually need to be reported to HMRC.

But regularly selling goods for profit, or providing a service for payment, is likely to count as trading and may need to be declared. Customers can check if they need to tell HMRC about additional income on GOV.UK.

CASE STUDY

“As soon as the wedding bookings started coming in, I knew I needed to look into my tax”

Lianna Dickson, 30, from Livingston, is currently on maternity leave from her role in influencer marketing and runs a successful wedding content creation business alongside family life as a new mum.

After getting married in 2024, Lianna realised she regretted not hiring a wedding content creator to capture behind-the-scenes moments from her own wedding day. With a background in social media and a long-held dream of running her own business, she saw the opportunity to combine both and launched Captured By Fifteen.

Lianna said: “I fell in love with all things weddings following my own and thought it was the perfect way to combine something I loved with the work experience I had.”

As a wedding content creator, Lianna captures authentic, behind-the-scenes moments as they naturally unfold on her phone, delivering raw footage and professionally edited highlight reels within 24 hours.

“Couples can wake up and relive their full wedding the very next morning in the most authentic way.”

Her business took off quickly and within her first year she had shot almost 50 weddings. As bookings and income grew, she knew she needed to look into her tax obligations.

“As soon as I started booking in a number of weddings I knew this was going to be a decent amount of extra money. I read a lot of information on GOV.UK and HMRC’s website.

“Once I realised my income was over the £1,000 trading allowance, I knew I’d need to complete a Self Assessment tax return.

“Everything online was super easy to understand.”

She found the process more straightforward than expected, keeping a detailed spreadsheet with tabs for invoices, outgoings, subscriptions and mileage to stay on top of her figures throughout the year.

“I had my tax return done within the hour. It was so much easier than I thought it would be.

I thought I would need to input every single transaction and that it would take hours, but it wasn’t the case at all – I had been keeping record of all the numbers, so it was really just a case of filling in information and copying the figures over.”

Her advice to anyone in a similar position is simple.

“Just keep track of everything and speak to someone who understands the process — or look up videos of someone explaining it if you struggle with just reading things.”

Lianna explains how her side hustle started on YouTube.

HMRC is encouraging anyone in a similar position – whether filming weddings, photographing events, baking celebration cakes or selling handmade goods – to use the Tax Help for Hustles guide or the free online HMRC tool to check whether they need to register.

No tax changes for online sellers

  • Online platforms to start sharing some user sales and personal data with HMRC from January 2025
  • HMRC confirms there are no changes to tax rules for people selling their unwanted possessions online
  • Guidance for sellers can be found on GOV.UK

People selling unwanted items online can continue to do so with confidence and without any new tax obligations, HM Revenue and Customs (HMRC) has confirmed.

The reminder comes as online platforms start sharing sales data with HMRC from January 2025 – a new process that, when announced last year, generated inaccurate claims that a new tax was being introduced. 

But whether selling last year’s festive jumper, getting some money back for a child’s outgrown baby clothes, or quietly offloading an unwanted Christmas present or two – absolutely nothing has changed for online sellers. 

For anyone who is unsure if their additional income could be taxable just search ‘online platform income’ on GOV.UK to use HMRC’s free online tool or download the HMRC app and go to the ‘news’ section under the ‘communication’ tab for more information.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said: “We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due.

“As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for Self Assessment.”

The new reporting requirements for digital platforms came into effect at the start of 2024. It is not a new tax and whether people are selling personal items on eBay, renting homes out on Airbnb or delivering takeaways through Just Eat – no tax rules have changed. 

Those who sold at least 30 items or earned roughly £1,700 (equivalent to €2,000), or provided a paid-for service, on a website or app in 2024 will be contacted by the digital platform in January to say their sales data and some personal information will be sent to HMRC due to new legal obligations.

The sharing of sales data does not automatically mean the individual needs to complete a tax return.

However, those who may need to register for Self Assessment and pay tax, include those who:

  • buy goods for resale or make goods with the intention of selling them for a profit 
  • offer a service through a digital platform – such as being a delivery driver or letting out a holiday home through a website
  • AND generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year

HMRC wants to help people get their tax right. Anyone unsure whether to complete a Self Assessment tax return for the 2023 to 2024 tax year or not, can check on GOV.UK. If new to Self Assessment, they can register on GOV.UK.

HMRC is working alongside online platforms to ensure sellers receive clear guidance on their tax responsibilities.