UK Raises Tax Reporting Threshold to Support Side Hustles

The government will increase the self-assessment threshold for trading income from £1,000 to £3,000, reducing tax filing requirements for 300,000 individuals.

The new threshold will eliminate the need for 300,000 people, including Vinted sellers, taxi drivers, and dog walkers, to file self-assessment tax returns.
Of those affected, 90,000 individuals will owe no tax, while others can use a simplified online service to report earnings up to £3,000.
The change aims to reduce administrative burdens and encourage entrepreneurial activity, especially for those with side hustles that grew during the pandemic.
The updated policy will not impact the total tax owed but simplifies the process for taxpayers with small trading incomes or property income.
The measure is part of the government's broader plan to modernize HMRC operations and support economic growth by fostering small-scale entrepreneurship.

The Times

The Independent

Sky News