{"id":6181,"date":"2025-01-29T10:26:01","date_gmt":"2025-01-29T10:26:01","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=6181"},"modified":"2025-01-29T10:26:03","modified_gmt":"2025-01-29T10:26:03","slug":"do-you-need-to-pay-tax-on-your-side-hustle-income","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/do-you-need-to-pay-tax-on-your-side-hustle-income\/","title":{"rendered":"Do you need to pay tax on your side hustle income?"},"content":{"rendered":"

Side hustles are a great way to boost your income, but they can come with tax obligations.<\/span><\/p>\n

<\/p>\n

You could sell goods online, rent out property, or offer different services.\u00a0<\/span>\u00a0<\/span><\/p>\n

Whatever your extra source of income, it is important to understand when to report and pay tax on your earnings.<\/span>\u00a0<\/span><\/p>\n

Even if your side hustle is occasional or part-time, assessing whether you need to report your earnings is essential.<\/span>\u00a0<\/span><\/p>\n

Selling personal possessions<\/span><\/b>\u00a0<\/span><\/h3>\n

Selling personal items such as clothes, furniture, or jewellery typically doesn\u2019t incur Income Tax.\u00a0<\/span>\u00a0<\/span><\/p>\n

However, you might need to pay Capital Gains Tax (CGT) if an item is worth more than \u00a36,000.\u00a0<\/span>\u00a0<\/span><\/p>\n

For instance, you sell an old painting for \u00a38,000 that you originally bought for \u00a31,600. With a gain of \u00a36,400, you may need to report this to HM Revenue & Customs (HMRC).<\/span>\u00a0<\/span><\/p>\n

Selling goods<\/span><\/b>\u00a0<\/span><\/h3>\n

If you are buying items to resell, upcycling, or making products to sell, you are likely trading and will need to report this income. Examples include:<\/span>\u00a0<\/span><\/p>\n

    \n
  • Upcycling furniture for resale<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
      \n
    • Importing goods to sell on online marketplaces<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
        \n
      • Reselling clothes from car boot sales for a profit<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

        Providing a service<\/span><\/b>\u00a0<\/span><\/h3>\n

        Income from services like gardening, babysitting, or dog walking must be reported. This includes payments received via online platforms.\u00a0<\/span>\u00a0<\/span><\/p>\n

        For example, babysitting services advertised on an app may require you to report income to HMRC.<\/span>\u00a0<\/span><\/p>\n

        Creating online content<\/span><\/b>\u00a0<\/span><\/h3>\n

        Earnings from online content, such as videos, podcasts, or social media influencing, are taxable.\u00a0<\/span>\u00a0<\/span><\/p>\n

        Even gifts or free services received in exchange for promoting products can count as income.\u00a0<\/span>\u00a0<\/span><\/p>\n

        For example, a beauty influencer who receives products for reviews and advertising income must declare this to HMRC.<\/span>\u00a0<\/span><\/p>\n

        Renting out land or property<\/span><\/b>\u00a0<\/span><\/h3>\n

        Rental income from letting out a spare room, driveway, or a second property is taxable.\u00a0<\/span>\u00a0<\/span><\/p>\n

        For instance, renting out a spare room via an online platform for short-term lets requires you to report this income.<\/span>\u00a0<\/span><\/p>\n

        Why reporting matters<\/span><\/b>\u00a0<\/span><\/h3>\n

        Failing to report side hustle income can lead to penalties or fines.\u00a0<\/span>\u00a0<\/span><\/p>\n

        If you are unsure about your obligations, our team can help you calculate what tax should be (if any), and ensure you are compliant with HMRC rules. Contact us today.\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

        Side hustles are a great way to boost your income, but they can come with tax obligations.<\/p>\n","protected":false},"author":2,"featured_media":6184,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,125],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6181"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=6181"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6181\/revisions"}],"predecessor-version":[{"id":6182,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6181\/revisions\/6182"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/6184"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=6181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=6181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=6181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}