HMRC issues £1,000 tax warning to everyone making money on the side

The HMRC is issuing a warning to individuals earning over £1,000 yearly from side jobs – which can range from online sales, dog walking, to babysitting – informing them that they are required to submit a tax return. They’ve also launched an online guide to assist people in deciphering when it's necessary to complete a self-assessment tax return.

The guide further alerts those who earn more than £6,000 from the sale of a single item, such as artwork or jewellery, could be subject to pay Capital Gains Tax on their earnings. Newly introduced government regulations on income disclosure encompass an extensive array of activities, including selling goods online, partaking in taxi or delivery services, creating content as social media influencers, and leasing space on platforms like Airbnb. Even routine tasks offered by younger individuals, such as babysitting, along with gardening, dog walking, and tutoring, fall under the new rules.

The updated HMRC guidelines state: "You may need to tell HMRC if you receive income through an online marketplace or social media, even if you do not need to pay tax on it. This could be whether it’s your main source of income or an additional source — sometimes called a ‘side hustle’."

It also details that the income could be in forms of money, gifts, or services acquired from:.

*selling personal belongings.

*selling products.

*providing services.

*producing online content.

*renting out property or land.

HMRC has an online checking tool available here which poses a series of basic questions about what individuals are selling. This includes a question related to the associated income and advises anyone earning more than £1,000 that they will need to complete a self-assessment tax return, even if