The Government has announced a significant change in tax regulations for individuals with side hustles. This change is expected to benefit around 300,000 taxpayers, with an estimated 90,000 no longer needing to report their trading income to HMRC.
From 2029, the threshold for filing a self-assessment tax return will rise from £1,000 to £3,000. The new rules will apply to a variety of activities, including selling items on platforms like Vinted and eBay, dog walking, gardening, and creating online content.
While individuals will still need to pay tax on earnings over £1,000, they won’t have to report their income until it reaches £3,000.
This shift is part of a broader government initiative to streamline HMRC operations and support entrepreneurial spirit across the UK.
James Blondel, Director at Whitley Stimpson said:
“This development is a refreshing change for those managing multiple income streams. It brings encouraging news to the thousands of UK sellers who rely on eBay as a side hustle to bolster their household income during challenging times.”
The Treasury has emphasised that this threshold increase will primarily benefit self-employed individuals, with 98% of the affected taxpayers reporting small trading incomes. The government also plans to introduce a new online form to simplify the declaration of cash earnings up to £3,000 for self-employed work.
To streamline the intricate tax return process, the government has announced the introduction of a new online form designed to report cash earnings up to £3,000 for self-employed individuals.
Earlier this year, the government revealed its initiative to tighten regulations on the so-called ‘side hustle tax’ affecting those engaged in online trading—purchasing items to resell for profit. Consequently, platforms like Vinted, Depop, and eBay are now required to share user information with HMRC.
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