Side Hustles Alert: Critical Tax Deadline Just Days Away (5 October 2025)
- The Penny Pincher Team
- 5 days ago
- 6 min read
If you earned money from side hustles during the 2024 tax period (6 April 2024 to 5 April 2025) and earned over £1,000, you have just days left to register for Self Assessment with HMRC. Miss the 5 October 2025 deadline and you'll face automatic £100 penalties, plus daily fines that can reach £900.
This isn't optional anymore. New regulations mean HMRC already knows how much you've earned from platforms like eBay, Vinted, Deliveroo, and Uber. The days of side hustles flying under the radar are over.
What Every Side Hustler Must Know
Deadline: 5 October 2025 to register for Self Assessment
Threshold: £1,000+ earnings from side hustles in 2024 require you to register
Penalties: £100 immediate fine, plus up to £900 in daily charges for delays
HMRC knows: Platforms now report your income directly to HMRC under DAC7 rules
What counts: Any trading for profit, not selling your own possessions
Good news: Expenses can dramatically reduce or eliminate your tax bill
Why This Deadline Matters More Than Ever
The side hustle boom has been a lifeline during the cost-of-living crisis. Whether you've been delivering food, selling handmade items, freelancing, or running any other side business, that extra income has helped millions of us stay afloat.
But HMRC has been watching. Since January 2024, new international tax regulations (DAC7) require all major platforms to report seller and worker income directly to HMRC. This includes:
Delivery platforms: Deliveroo, Just Eat, Uber Eats
Selling platforms: eBay, Vinted, Etsy, Amazon
Gig platforms: Uber, TaskRabbit, Fiverr
Payment processors: PayPal, Stripe
The reality: If you've earned money through any major platform, HMRC already has the data, and knows what you've been up to!
Does Your Side Hustle Qualify? Check These Examples
You MUST Register If You Earned £1,000+ From:
Food delivery driving: £150/month with Deliveroo = £1,800 annually
Handmade items: £100/month selling crafts on Etsy = £1,200 annually
Freelance services: £200/month graphic design work = £2,400 annually
Reselling for profit: Buying vintage items to resell = Any profit over £1,000 Tutoring: £80/month private lessons = £960 annually (close - register to be safe)
You DON'T Need to Register For:
Selling your possessions: Old clothes on Vinted, furniture, electronics Car boot sale proceeds: Personal items you already owned One-off sales: Selling an inherited item
Borderline case? If you bought something specifically to resell it (even vintage finds or wholesale items), that counts as trading for profit.
The Real Cost of Missing This Deadline
5 October deadline missed:
Automatic £100 penalty (even if you owe £0 in tax)
After 3 months (January 2026):
Daily £10 fines for up to 90 days = £900 maximum
After 6 months:
Additional penalty: 5% of tax due OR £300 (whichever is higher)
After 12 months:
Another penalty: 5% of tax due OR £300 (whichever is higher)
Real example: A side hustler owing £200 in tax could face £1,300 in penalties for missing deadlines. The penalties often exceed the actual tax due.
Calculate Your Actual Tax Bill (It's Probably Lower Than You Think)
Here's the crucial part most side hustlers don't realise: you only pay tax on profit, not total income.
Example: Etsy seller with £2,500 income
Total sales: £2,500
Materials and supplies: £900
Postage and packaging: £300
Home office costs: £200
Petrol for supply runs: £150
Taxable profit: £950 (below £1,000 threshold = no tax due)
Common expenses you can claim:
Stock, raw materials, equipment
Fuel and vehicle costs (45p per mile)
Postage, packaging, delivery fees
Home office costs (percentage of bills)
Professional subscriptions and software
Marketing and advertising
Many side hustlers find they owe little or no tax after claiming legitimate expenses.
What to do if you think you might owe tax
Check If You Need to Register
Use HMRC's official tool: Check if you need to send a Self Assessment tax return
Calculate your total side hustle income for 2024
Gather evidence of your earnings (bank statements, platform reports)
Register With HMRC
If required, register immediately at: Register for Self Assessment
You'll need:
National Insurance number
Details of your side hustle activities
Business start date
Contact information
Prepare for the January Deadline
Download income reports from all platforms you've used
Start collecting expense receipts
Set up a simple tracking system for ongoing expenses
Calendar reminder for 31 January 2026 (submission deadline)
Popular Side Hustles and Their Tax Implications
Delivery Driving
Platforms: Deliveroo, Just Eat, Uber Eats
Typical earnings: £8-12/hour after fuel
Key expenses: Fuel, vehicle maintenance, phone bills, insulated bags
Online Selling
Platforms: eBay, Vinted, Etsy, Amazon
Typical earnings: £200-800/month once established
Key expenses: Stock costs, packaging, listing fees, storage
Freelancing
Platforms: Upwork, Fiverr, PeoplePerHour
Typical earnings: £15-40/hour depending on skills
Key expenses: Software subscriptions, equipment, training courses
Local Services
Activities: Cleaning, gardening, handyman work
Typical earnings: £12-25/hour
Key expenses: Supplies, tools, travel costs, insurance
Frequently Asked Questions About Side Hustle Tax Deadlines
Do I need to register if I only earned £800 from side hustles?
No, if your total side hustle income was under £1,000 for the 2024 tax year, you don't need to register. However, this only applies to trading income - selling your own possessions doesn't count towards this threshold at all.
What happens if I register late?
You'll face an automatic £100 penalty, regardless of whether you actually owe any tax. After three months, HMRC can charge daily fines of up to £ 10, totalling £900. These penalties often cost more than the tax itself, so it's never worth the risk.
I earned £1,200 but had £300 in expenses - do I still need to register?
Yes, you must register based on your gross income (£1,200), not your profit. However, when you submit your return, you'll claim those £300 expenses, bringing your taxable profit to £900 - meaning you'd likely owe no tax.
Can I register for Self Assessment even if I'm not sure I need to?
Absolutely. It's better to register when you don't need to than face penalties for not registering when you should have. HMRC won't penalise you for registering unnecessarily, and you can always submit a return showing no business income if needed.
How does HMRC know about my side hustle income?
Since January 2024, platforms such as eBay, Deliveroo, Uber, and Etsy have been required to report their earnings directly to HMRC under DAC7 regulations. This includes total payments, the number of transactions, and your personal details. They already have your data!
I sold items on Vinted - do I need to register?
Only if you were buying items specifically to resell them for profit. Selling your own clothes, shoes, and personal items doesn't count towards the £1,000 threshold. But if you were sourcing vintage items or wholesale goods to resell, that's trading and counts.
What if I used multiple platforms - do I add them all together?
Yes, you must add up the income from all side hustle activities. If you earned £600 on Deliveroo and £500 freelancing, that's £1,100 total - over the threshold. All business income is combined, regardless of the number of different platforms or activities.
When is the deadline to actually pay any tax I owe?
The registration deadline is 5 October 2025. However, you don't need to submit your actual tax return or pay anything until January 31st, 2026. Registering now allows you to access the system and avoid penalties.
Can I claim expenses for my car if I do delivery driving?
Yes, you can claim 45p per mile for the first 10,000 business miles per year (25p after that). Keep a log of all business journeys. Alternatively, you can claim actual costs (fuel, insurance, repairs) but you'll need to work out the business percentage of total usage.
What records do I need to keep for my side hustle?
Keep all income records (platform reports, bank statements, invoices) and expense receipts for at least 5 years. A simple spreadsheet tracking monthly income and expenses is usually sufficient. Take photos of paper receipts and save digital copies of everything.
Don't Let Your Side Hustle Success Become a Tax Nightmare
Your side hustle has probably helped you through some tough financial times. Don't let success turn into penalties because you missed a crucial deadline.
With just days left until the 5 October deadline, every day counts. The registration process itself only takes 15-20 minutes online, but the consequences of missing it can last for months.
Take action today:
Check your 2024 earnings - Add up income from all side hustle platforms
Register immediately if you're over £1,000 - Don't wait until the last minute
Start tracking expenses - Set up a simple system for ongoing records
Set calendar reminders - 31st January 2026 for you submission and payment of any towed taxes deadline
The good news? Most side hustlers find their actual tax bill is much lower than expected once they claim legitimate expenses. Some owe nothing at all.
But none of that matters if you miss the registration deadline.
Register now: HMRC Self Assessment Registration
Need help? Call HMRC on 0300 200 3310
Don't delay, as it might well cost you hundreds in penalties. Your side hustle success should improve your finances, not create expensive problems with HMRC!
