
As the 31 January deadline for filling in a self-assessment tax return online and paying the tax due approaches, 35% of those with a side job are earning above the £1,000 threshold at which tax on side hustle income becomes due, according to statistics from personal finance comparison site Finder.
Louise Bastock, finance expert at Finder, said that those earning more than £1,000 per year from their side hustle – including making money from online platforms such as Vinted or Etsy – need to submit a self-assessment tax return.
“If you have a side hustle, it’s best to fill in your tax return sooner rather than later to avoid a last-minute rush on deadline day. You can file a self-assessment the day after a tax year ends – so 6 April – if you’re super organised. Remember to include any allowable expenses on which you can claim tax relief, such as travel costs and raw materials,” she said.
Many unaware of allowance
The Finder research found that many of us are unaware of the amount you can earn from your side hustle without paying tax.
Some 53% guessed the £1,000 figure incorrectly, and younger people – who earn the most from side hustles – were the least likely to get the figure right.

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Two-thirds (67%) of generation Z and three in five or 60% of millennials did not correctly identify the trading allowance of £1,000 per year when surveyed.
Vinted and eBay will now pass your information to the tax collector if you’ve sold more than 30 items or earned more than £1,700, so it is important to fill in a form if this affects you, which will be sent to you by the platforms.
However, if you are selling only your own personal items that you bought for a higher price, you are not eligible to pay tax – only if you are trading for a profit.
Vinted says that, if the money you make on Vinted over a year is less than what you paid for the items, you pay no tax.
The only time that an individual item might be taxable is when you sell it for more than £6,000 and there is a profit from the sale (i.e., it sells for a higher price than you paid for it).
Side hustle success
Separate research into side hustles from Adobe Express found that two-thirds (66%) of us start a side hustle because we need extra income, with almost a third (31%) setting up their side gig to pursue a passion or a hobby, showing that for many, a side hustle is for personal fulfilment and not just financial gain.
Other reasons include having flexibility in work schedules to allow the pursuit of alternative ways of making money (22%), to prioritise childcare or family commitments (14%), and to help people eventually transition to self-employment (11%).
Over a third of side hustlers say they typically bring in between £100 and £500 each month from their venture, while 20% of Brits are earning £1,000 or more each month.
When asked what has helped support growth of their side hustle, over a third (35%) said social media platforms have been crucial for marketing their business, while 34% mentioned the invaluable support from family and friends.