Taxation on side hustles

Side hustle is a self-employment as per HMRC definition. So, it is advisable to register for Self Assessment Tax Return(SATR) if income from all such activities is higher than £1000 or report this in your SATR, if already registered. Well, you can claim £1000 or entire such revenue (lower of the two) as Trading Allowance. If revenue is higher and if the actual spend to earn that revenue is higher than £1000 then you can claim all expenses instead of Trading Allowance and tax is computed as per slab on profit thus arrived.

Remember side hustle income from portals and aggregators like Paypal, ebay, Air Bnb, Uber is already reported to HMRC for each trading partner on such portals.