HMRC’s ‘Help for Hustles’ Campaign

This is a recent initiative by HMRC. The campaign is designed to assist individuals
who earn extra income outside their main job, ensuring they understand their tax obligations. HMRC set up this initiative as more people have
taken on ‘side hustles’ to help them through the cost-of-living crisis but may not be aware of the tax implications.

If someone earns more than £1,000 annually from their side hustle, HMRC may classify it as ‘trading,’ meaning they might need to pay tax. This
would also mean the individual would need to set themselves up as a sole trader.

The campaign provides straightforward guidance to help people check if they need to report their earnings and avoid unexpected tax bills and late
payment penalties. A side hustle is considered by HMRC to be a method of making extra income outside of someone’s regular day job. It can mean
anything like dog walking, digital content creation or selling handmade goods.