According to a recent money.co.uk survey, almost a third of UK workers have found ways of earning extra cash to supplement their income due to the cost of living crisis.
With the newly implemeted (Jan 1st) tax crackdown on millions of workers who earn extra money from a side hustle, money.co.uk business loans expert, Cameron Jaques, has cautioned those with side hustles to ensure they’re paying the right amount of tax.
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Money.co.uk business loans expert, Cameron Jaques, said: “While extra cash is always welcome, some side hustlers won’t be used to the tax implications of working for themselves, and could easily land themselves in hot water with the tax man.
“The bottom line is, whether it’s selling on sites like Vinted or Depop, doing a bit of dog walking or babysitting, if you’re earning more than £1,000 in a tax year from your side hustle, you must register as self-employed with HMRC, even if you are also in full-time employment.
“You must file a self-assessment tax return and pay the tax yourself – it doesn’t automatically come out of your pay packet like with PAYE. If you fail to do this, due to new HMRC rules effective from Jan 1st, you could find yourself in tax trouble in April 2025.
“Understanding how to avoid any unwelcome tax bills is a key part of having more than one job, so if you are tempted to start a side hustle, do your research first.”
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By GlobalData
