Side Hustle Tax Deadline 2026

Don’t Miss the HMRC Sidehustle Registration Deadline

If you earned money from side hustles during the 2025–26 tax year (6th April 2025 to 5th April 2026) and earned over £1,000, you must register for Self Assessment with HMRC by 5th October 2026.

Miss this deadline, and you face an automatic £100 penalty, even if you owe no tax, plus daily fines that can reach £900.

This is no longer optional. Under new reporting rules, HMRC already receives income data from platforms such as eBay, Vinted, Deliveroo, Uber, and Etsy. Side hustles are no longer flying under the radar.

What Every Side Hustler Must Know for 2026

Registration deadline: 5th October 2026

Who must register: You must register for Self Assessment by this date if you've earned £1,000 or more in side hustle income or are newly self-employed, a new landlord, or have untaxed income/capital gains above £3,000 in the 25/26 tax year.

Penalties for missing it: £100 automatic fine, plus daily penalties of up to £900

HMRC visibility: Platforms now report earnings directly to HMRC under DAC7 rules

What counts: Trading for profit, not selling your own personal items

Good news: Claiming expenses can significantly reduce, or even eliminate, your tax bill

Why This Deadline Matters More Than Ever

Side hustles have been a financial lifeline during the cost-of-living crisis. Food delivery, online selling, freelancing, tutoring, and local services have helped many households stay afloat.

But HMRC has caught up.

Since January 2024, international reporting rules (DAC7) mean platforms must share seller and worker income directly with HMRC, including:

Delivery platforms: Deliveroo, Just Eat, Uber Eats

Selling platforms: eBay, Vinted, Etsy, Amazon

Gig platforms: Uber, TaskRabbit, Fiverr

Payment processors: PayPal, Stripe

If you earned money through major platforms, HMRC already has the data.

Does Your Side Hustle Qualify? Real Examples

You MUST register if you earned £1,000+

• Food delivery driving: £150 per month = £1,800 per year

• Selling handmade items: £100 per month on Etsy = £1,200 per year

• Freelancing: £200 per month = £2,400 per year

• Reselling for profit: Buying items specifically to resell, any profit over £1,000

• Tutoring: £80 per month = £960 per year If you are close to the threshold, registering is sensible
  

You do NOT need to register for

• Selling your own possessions: Clothes, furniture, electronics

• Car boot sales: Personal items already owned

• One-off personal sales: Inherited items
  

Borderline rule: If you bought something with the intention of reselling it, that counts as trading.

The Real Cost of Missing the Deadline

Miss 5th October 2026, and the penalties will stack up fast!

Immediately: £100 automatic fine

After 3 months (January 2027): £10 per day, up to £900

After 6 months: Additional penalty of 5% of tax owed or £300, whichever is higher

After 12 months: Another 5% or £300 penalty

Real-world impact: Owe £200 in tax, penalties can exceed £1,300.

Your Actual Tax Bill Is Often Lower Than You Think

You pay tax on profit, not turnover.

Example: Etsy seller

• Total sales: £2,500

• Materials: £900

• Postage and packaging: £300

• Home office costs: £200

• Travel costs: £150
  

Taxable profit: £950: Below the £1,000 threshold, no tax due

Common expenses you can claim

• Stock and materials

• Mileage at 45p per mile

• Postage and packaging

• Home office costs

• Software and subscriptions

• Marketing and advertising
  

Many side hustlers owe little, or nothing, once expenses are claimed properly.

What To Do Now

1. Check if you need to register

• Use HMRC’s Self Assessment checker.

• Add up all side hustle income for 2025–26

• Gather platform reports and bank records
  

2. Register with HMRC if required

You’ll need:

• Your National Insurance number

• Your side hustle details

• Business/Sidehustle start date

• Your contact information
  

3. Prepare for the January deadline

• Download income reports

• Collect receipts

• Track expenses monthly

• Set a reminder for 31st January 2027
  

That’s the deadline to submit your return and pay any tax owed.

Popular Side Hustles and Tax Notes

Delivery driving: Fuel, vehicle costs, phone bills, bags

Online selling: Stock, fees, packaging, storage

Freelancing: Software, equipment, training

Local services: Tools, supplies, travel, insurance When do I pay my tax?

If you are in the Self Assessment system, payments for income earned between 6 April 2025 and 5 April 2026 are generally due as follows:

• First Payment on Account: 31 January 2026 (Paid during the tax year based on estimated earnings).

• Second Payment on Account: 31 July 2026 (Second instalment of 25/26 tax).

• Balancing Payment: 31 January 2027 (Final payment to settle any remaining 25/26 tax due).
  

Frequently Asked Questions

Do I need to register if I earned £800? No. The threshold is £1,000 in trading income. Selling personal items does not count.

What if I register late? £100 penalty straight away, then daily fines. Even if you owe no tax.

I earned £1,200 but had £300 in expenses, do I register? Yes. Registration is based on gross income, not profit.

Can I register even if I’m unsure?

Yes. It’s safer to register than risk penalties.

How does HMRC know about my income? Platforms report earnings directly under DAC7 rules.

Multiple platforms? All income is added together, and if all income means youve earned over £1k you'll need to register.

When do I actually pay tax? Register by 5th October 2026. Submit and pay what's owed by 31st January 2027.

Your side hustle should improve your finances, not wreck them with penalties.

Registration takes around 15 minutes. Missing the deadline can cost hundreds or more.

Action steps today

• Add up your side hustle income

• Register if you’re over £1,000

• Start tracking expenses

• Set your January 2027 reminder
  

Most people owe far less tax than they fear, but none of that matters if you miss the deadline.