Do I need to tell HMRC about my side income?
There is a £1,000 line, and it is gross income, not profit. Put in what you were paid for the tax year and what the work cost you, and this tells you which side of the line you are on and what to do about it.
Do I need to tell HMRC about my side income?
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The test is gross, not profit
The trading allowance is £1,000 a tax year. It is measured against what you took in, before costs. A hustle that cleared £300 after £900 of supplies still counts as £1,200 of trading income.
Over £1,000 means registering
You must register for Self Assessment by 5 October after the tax year ends. You then choose, for the year, between deducting the £1,000 allowance or your actual costs. You cannot deduct both, and the calculator shows which is better for you.
Under £1,000 can still mean registering
HMRC lists reasons you might register anyway: you made a loss you want to claim, you want to pay voluntary Class 2 National Insurance, or you want to claim Tax Free Childcare or Maternity Allowance based on self-employment.
Figures for the 2026/27 tax year, checked 25 October 2026. Sources: Tax-free allowances on property and trading income. An estimate, not advice. SideTill is not tax software.
Keep the number for every month
SideTill is the simple record of your side hustle: log the job, send the invoice, record the money when it comes in, and see whether the month actually made you money. It also shows your best month, so you can tell a bad month from a bad habit.
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Questions
Does the £1,000 cover all my side income?
No. It covers trading income: self-employment, casual services such as gardening, and hiring out your own equipment. Other income, like employment or rent from property, is counted separately.
What if I am under £1,000 but made a loss?
You can only claim relief for a loss by registering and filing a return, so a loss is a reason to register even below the allowance.
Do I still keep records under £1,000?
Yes. You generally do not need to tell HMRC, but you must keep records of the income.