Earning Extra Income? You Might Need to File a Tax Return – Here’s What to Know
If you earn extra income from a side hustle, you could be legally required to register for Self Assessment and complete a tax return - and it’s better to get ahead of it now, rather than wait until the January deadline.
The threshold is simple: if you earn more than £1,000 in a tax year from any additional income, you may need to file. This applies whether you’re selling online, renting out property, freelancing, creating content, dog walking, tutoring, or even trading cryptoassets.
Why Act Now?
Filing early means you:
- Avoid the stress of the January rush
- Know what you owe sooner, so you can budget or set up a payment plan
- Get peace of mind by knowing your tax affairs are in order
You don’t need to pay immediately - the deadline for payment is still 31 January 2026 for the 2024-25 tax year - but getting your return done early gives you options and avoids surprises.
Many people running side hustles or earning income outside of employment simply don’t realise that tax rules apply - until it’s too late. If you’re unsure whether you need to file, or want help staying compliant, get in touch with us. We’ll guide you through what’s required and make it as straightforward as possible.
With just 10 weeks or so to go until the new tax year, many businesses are preparing for the changes that Making Tax Digital (MTD) will bring. From April, sole traders and landlords with an income of over £50,000 will need to submit quarterly updates to HMRC.
If you are new to being self-employed or being a landlord, Self Assessment can feel like one of those jobs you know you should understand better, but never quite get around to.