Side hustle tax: do you need to tell HMRC?

There's no special side hustle tax. The same rules as always apply. What changed is that selling platforms now send HMRC information about some sellers.

Selling your own stuff

If you're clearing out clothes, furniture or old tech for less than you paid, that isn't trading and there's usually no tax to pay. Very valuable items, like antiques or jewellery sold for over £6,000, can be subject to Capital Gains Tax.

Trading: making or buying things to sell

If you buy things to resell at a profit, make products, or offer services, that's trading. The first £1,000 of trading income a year is tax-free under the trading allowance, and you don't need to tell HMRC. Above £1,000 of income (not profit), you need to register for Self Assessment.

What platforms report to HMRC

Since 2024, platforms like Vinted, eBay, Etsy and Airbnb share details with HMRC of sellers who make 30 or more sales or about £1,700 (€2,000) or more in a calendar year. Being reported doesn't mean you owe tax. It just means HMRC may check whether you should have registered.

Signs you're trading

• You buy items specifically to sell on
• You sell regularly, or make things to sell
• You're selling to make a profit rather than to clear space

If you're over £1,000

Register by 5 October after the tax year ends, keep records of income and costs, and set aside money for tax. You can deduct either your actual expenses or the £1,000 allowance, whichever is higher.

General guidance, not tax advice.