Do I need to tell HMRC about my side income?
Short answer: it depends on how much you earn from it and whether it counts as trading.
The quick rules
- Under £1,000 gross in the tax year: normally covered by the trading allowance. No tax and usually no need to tell HMRC.
- Over £1,000: you generally need to register for Self Assessment and report it. Register by 5 October after the end of the tax year (the year ends 5 April).
- Selling your own unwanted stuff: usually not trading, so not taxable income.
- Buying to resell, making to sell, or selling regularly: this is generally trading.
Why HMRC may already know
Online platforms such as eBay, Etsy and Vinted report certain seller details and earnings to HMRC under rules that started in 2024. Having records ready makes any later question easy.
What counts toward the £1,000?
It is gross income (money received), not profit. Costs only matter if you choose to claim actual expenses instead. See the trading allowance explained.
Next steps
- Add up what you received from selling this tax year.
- Use the free checker.
- If you are over, register for Self Assessment on GOV.UK and keep records of income and costs.
Want this done for you?
The UK Side Hustle Tax Tracker (Excel, £9) keeps your income, expenses and mileage in one place and shows whether the £1,000 allowance or actual expenses is better for you. Or get it with a fee calculator and security guide in the Starter Bundle (£19).