New HMRC '£1,000' tax update for Brits

HMRC has given an update to Brits across the country to ensure they don't miss completing an important check

Millions of UK workers with side hustles, rental income or freelance earnings are being urged to check if they need to file a tax return after a fresh alert from HM Revenue & Customs. The tax authority has launched an updated online tool designed to help people work out whether they need to complete a Self Assessment return for the 2025-26 tax year.

HMRC warned that people may need to submit a return if they have started working for themselves, become a landlord or earned extra cash outside their main job.

It comes as growing numbers of Brits take on second jobs, sell goods online or rent out spare rooms to help cope with the rising cost of living.

In a social media post, HMRC said: "Unsure if you might need to complete a tax return? Check if you need to send a Self Assessment tax return."

The online checker covers the tax year running from April 6, 2025 to April 5, 2026 and asks users a series of questions about their income and circumstances.

HMRC said people may need to complete a return if they are:

• Newly self-employed
• A landlord
• A new partner in a business partnership
• Earning more than £1,000 from a side hustle

The tax authority specifically highlighted people making money from online selling or renting out part of their home.

Under current rules, people can earn up to £1,000 a year from self-employed work before they may need to register for Self Assessment under the trading allowance rules.

But once income goes above that threshold, many will need to tell HMRC and potentially file a return.

Those who could be caught include people regularly selling goods online through sites such as eBay, Vinted, Etsy and Depop, particularly if they are buying items to resell for profit rather than simply clearing out unwanted possessions.

Others potentially affected include dog walkers, babysitters, cleaners, gardeners, delivery drivers, taxi drivers, tutors, fitness instructors and tradespeople taking on jobs outside their normal employment.

The rules may also apply to people earning extra money from social media and online platforms, including influencers, YouTubers, content creators and those making commission through affiliate marketing.

Freelance workers carrying out graphic design, photography, writing, web design or consultancy work alongside a salaried job may also need to register.

Landlords may need to complete a return if they receive rental income from a buy-to-let property, holiday let or by renting out rooms in their home above the tax-free allowance limits.

Self Assessment is the system HMRC uses to collect Income Tax from people whose earnings are not automatically taxed through PAYE.

As well as the self-employed and landlords, tax returns are commonly required for higher earners with more complex finances, business partners and some people with investment income.

People who fail to register or submit returns on time can face penalties and interest charges.

HMRC said the online tool will not send personal details to the tax authority and can be used free of charge.

The checker is available via the Government website and is intended to help people establish quickly whether they need to take action before filing deadlines approach. Details are available here.