UK Side Hustlers Get Tax Break – No More Self-Assessment Filing Under £3,000!
Up to 300,000 Side Hustlers to Dodge Tax Returns
Hundreds of thousands of Brits earning extra cash from side hustles are about to get a massive tax break. Tax Minister James Murray is set to announce today that if you make less than £3,000 selling on eBay, renting out via Airbnb, or trading on Vinted, you won’t have to file a Self-Assessment tax return anymore.
This big shake-up lifts the Income Tax Self Assessment (ITSA) reporting threshold for trading income from £1,000 to £3,000 gross. It’s a lifeline for part-time traders, freelancers, dog walkers, gardeners, taxi drivers, and online content creators who’ve been bogged down with tax forms for small incomes.
More Time Hustling, Less Time on Paperwork
“From trading old games to creating content on social media, we are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit,” said James Murray. “Taking hundreds of thousands of people out of filing tax returns means less time filling out forms and more time for them to grow their side hustle.” “We are going further and faster to overhaul the way HMRC works to make sure it delivers the Plan for Change that will help put more money in people’s pockets.”
Nearly 90,000 of those earning under £3,000 won’t owe any tax and won’t need to report to HMRC at all. Others will have access to a simple digital system to pay what they owe hassle-free.
Business Leaders Cheer the Tax Relief
Experts and business leaders are thrilled about the change.
Patricia McGirr, founder of Repossession Rescue Network, called it, “a tax change that actually makes sense.” She added, “Less pointless paperwork, more time for people to crack on with earning a living. This is great news for side hustlers, and a relief for HMRC staff no longer rummaging down the back of the fiscal sofa for pennies.”
Pete Mugleston, Managing Director at Online Mortgage Advisor, said, “Raising the self-assessment threshold to £3,000 is a welcome move that will simplify tax reporting for thousands of side hustlers and small traders. Many people earning extra from platforms like Vinted, Etsy, or part-time services will no longer face the administrative burden of filing a tax return, freeing up their time and HMRC’s resources.”
More Reforms Coming – Customs, Trade & Tax Crackdowns
Alongside the tax threshold boost, James Murray will reveal new plans to simplify the government’s Temporary Admission customs process — a boost for sectors like art and antiques frequently brought into the UK for exhibitions.
A digital pilot launched with the US aims to streamline trade processes and ease cross-Atlantic business dealings.
The minister will also outline a crackdown on “phoenixism” — where directors shut down companies to dodge taxes — plus a new reward scheme to encourage whistleblowers reporting tax fraud.
These announcements mark HMRC’s 20th anniversary and signal a move towards modernising tax rules to fit today’s gig economy and digital trade landscape.
