Overview

• The UK tax authority will raise the trading income Self-Assessment threshold from £1,000 to £3,000 by the end of 2029
• Earnings between £1,000 and £3,000 must be declared through a streamlined online service instead of the full Self-Assessment form
• The existing £1,000 trading allowance remains unchanged and continues to exempt those incomes from reporting and tax
• Basic-rate taxpayers stand to incur up to £600 in tax on £3,000 of side income, with higher-rate and additional-rate bills reaching £1,200 and £1,350
• As part of its Plan for Change, HMRC will partner with software providers to ensure small businesses and side hustlers have access to affordable digital compliance tools