Side hustles are increasingly popular, but many don't realise their tax obligations. Whether you're freelancing, selling online, or renting property, understanding tax rules prevents surprises.
When Do You Need to Register?
You must register for Self Assessment if you earn over £1,000 from self-employment in a year. Even if you earn less, registering can help you claim expenses.
- Register if earning over £1,000
- Deadline: 5 October after tax year end
- Register online via HMRC
Expenses You Can Claim
You can deduct expenses wholly and exclusively for your business. This includes equipment, software, home office costs, and travel. Keep receipts and track everything.
Can I use part of my home as an office?
Yes. You can claim either actual expenses (utility bills, internet proportional to room) or HMRC's simplified flat rate of £10 to £26 a month, depending on how many hours you work from home.
National Insurance
Self-employed workers pay Class 4 National Insurance on profits above £12,570. Class 2 is treated as paid if profits are above £7,105, and you can pay it voluntarily to fill gaps if your profits are lower.
- side hustle
- tax
- self assessment
- extra income
- UK