IF you earned more than £1,000 in the last tax year from your side hustles, you need to register for self-assessment. If you miss the October 5 deadline for registration and then fail to send in a tax return on time, you'll likely face a fine. 1 Read on to find out how you can avoid an £100 fine Credit: Getty A side-hustle is something you do to earn extra income, such as selling things online, doing freelance work alongside your normal job, or making money from tasks like pet-sitting, dog walking, or babysitting.
How much you earn is important. If you make less than £1000 in a tax year from your hustle, it doesn’t count as taxable income, and you don’t have to declare it. But, once you start making more than this, you need to register as self-employed and start paying tax on the money earned over this amount.
The threshold is based on your profit after deductible expenses. For instance, if you were making and selling jewellery, you can deduct the money you spent buying materials from how much you earned in total. Read more on Money TO YOUR BENEFIT Martin Lewis' warning to anyone on ESA, tax credits or housing benefit You only need to file and pay tax if your remaining profits are more than £1,000 for the year.
You also need to register if any of the following applied in the past year: you were a sole trader you were a partner in a business partnership you had a total taxable income of more than £150,000 you had to pay Capital Gains Tax when you sold or ‘disposed o.