UK Raises Tax Reporting Threshold to Ease Burden on Side-Hustlers

The government will increase the self-assessment threshold from £1,000 to £3,000, simplifying tax filing for 300,000 individuals by 2029.

The UK government has announced plans to raise the Tax Self Assessment (ITSA) reporting threshold for trading income from £1,000 to £3,000.
The change will relieve 300,000 individuals, including Vinted sellers, taxi drivers, and online content creators, from the need to file self-assessment tax returns.
Of those affected, 90,000 will owe no tax and will no longer need to report their income, while others can declare earnings through a simplified online service.
The measure is designed to reduce administrative burdens and encourage entrepreneurial activity, particularly for those who started side hustles during the pandemic.
The new threshold is set to be implemented by 2029 and will not alter the total amount of tax owed by individuals.