Is my side hustle income taxable if I only make a few hundred quid?
I've been selling stuff on Etsy for about 8 months and made roughly £450 so far. My main job is PAYE. Do I really need to tell the tax office about this or is there a threshold?
I've been selling stuff on Etsy for about 8 months and made roughly £450 so far. My main job is PAYE. Do I really need to tell the tax office about this or is there a threshold?
Technically you do need to declare it, but there's a bit of wiggle room depending on your situation. In the UK, the trading allowance means you can earn up to £1,000 a year from self-employment or miscellaneous income without needing to do anything at all - no tax return required. So at £450, you're well under that threshold and honestly most people in your position just don't bother reporting it. That said, if you do declare it, you won't owe any tax because you're below the personal allowance and the trading allowance covers you. The risk of not declaring it is pretty minimal at these numbers, but technically HMRC could come after you if they somehow found out.
The thing is, once you start making proper money from it - and it sounds like you might, given you've been at it for 8 months - you'll need to get your ducks in a row. I learned this the hard way actually. I was running a catering side gig alongside my restaurant job years back, and I kept putting off sorting the paperwork because the amounts seemed so small. Eventually I had to do a proper tax return and it was a nightmare catching everything up. My advice? If you plan to keep this going and it grows beyond a grand or so, register as self-employed now and just get used to tracking everything. It's dead easy once you start doing it. Keep receipts, track your costs (packaging, fees, etc), and you might find you owe even less tax anyway because you can offset expenses.
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