📌 The Rise of the Side Hustle – What It Means for You

Self-employment is on the rise across the UK, fueled by a growing number of people turning to side hustles to supplement their income. Whether it's freelancing, e-commerce, or offering professional services, many individuals are exploring new income streams while managing a full-time job. But with additional income comes important tax responsibilities—here’s what you need to know.

Why Side Hustles Are Booming

It’s no surprise that more people are seeking alternative income sources, especially given the ongoing cost-of-living challenges. According to industry data, the number of side hustlers in the UK has grown by 20% in the past year, now accounting for 11% of all self-employment. Notably, working mums make up 21% of all side hustles, reflecting a shift towards flexible income options.

From Side Hustle to Full-Time Business?

Many part-time business owners eventually transition to full-time self-employment. In fact, the self-employed population in the UK has grown significantly, with 4.4 million individuals working for themselves as of late 2024—a number that continues to rise. This sector’s contribution to the UK economy has also increased by 11% year-on-year, highlighting the growing impact of independent businesses.

Tax Responsibilities for Side Hustlers

Whether your side hustle is a passion project or a growing business, you must ensure that you comply with tax regulations:

✅ Self-Assessment Tax Return – If your total untaxed income exceeds £1,000 per year, you must register with HMRC and complete a self-assessment tax return.

✅ Deadlines to Remember – The tax year runs from 6 April to 5 April, with key deadlines:

• 31 October – Paper tax returns deadline
• 31 January – Online tax return and tax payment deadline
• Late penalties – A minimum £100 fine for late filing, with additional charges for further delays

✅ Keeping Accurate Records – HMRC places great importance on proper bookkeeping. Failing to keep accurate records may lead to incorrect tax returns and potential penalties.

The £1,000 Trading Allowance

If your side hustle earns under £1,000 annually, you may be eligible for the Trading Allowance, which allows you to earn this amount tax-free without reporting it to HMRC. However, if your income exceeds this threshold, you must declare it and pay the required tax.

How Certax Accounting Bradford Can Help

At Certax Accounting Bradford, we specialise in supporting side hustlers, freelancers, and small businesses with:

🔹 Self-Assessment Tax Returns – Hassle-free tax filing to keep you compliant
🔹 Tax Planning & Allowances – Maximising tax efficiency and minimising liabilities
🔹 Business Structures & Planning – Helping you decide between sole trader or limited company
🔹 Bookkeeping & Financial Forecasting – Ensuring smooth business growth and cash flow management

If you need expert tax advice or guidance on transitioning from a side hustle to a full-time business, get in touch with us today!

📞 01274 800 550
📧 bradford@certax.co.uk