Hmrc changes way it collects tax and imposes new £3,000 threshold

GOVERNMENT'S TAX ARM IS SHAKING THINGS UP FOR UK HOUSEHOLDS WHO HAVE INCOME VIA A SIDE HUSTLE JOB. 07:17, 31 May 2025 HMRC has changed the way it collects tax for side hustles - and

imposed a new £3,000 threshold. The Labour Party government's tax arm is shaking things up for UK households who have income via a side hustle job. Currently, the reporting threshold

for trading income is set as £1,000, however, this is being increased to £3,000 in the not-too-distant future. That means individuals with side hustle incomes of up to £3,000 will no longer

be required to file a full self-assessment tax return. This is a huge win for those with small businesses and side hustle who have, up until now, been overwhelmed with the process of filing

a tax return. With this change, there will be less paperwork to worry about and more time to focus on growing your business instead. READ MORE UK SET TO SIZZLE IN 'GLORIOUS' 27C

MINI-HEATWAVE WITH 33 COUNTIES IN ENGLAND HIT While it’s good news for many, it’s important to remember that it only applies to certain income brackets and so you still might be looking at

reporting obligations, depending on how much your side hustle actually earns. Labour Party Exchequer Secretary to the Treasury, James Murray said: "From trading old games to creating

content on social media, we are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit. Article continues below "Taking hundreds

of thousands of people out of filing tax returns means less time filling out forms and more time for them to grow their side-hustle. "We are going further and faster to overhaul the way

HMRC works to make sure it delivers the Plan for Change that will help put more money in people’s pockets." Susan S. Thomas, acting Executive Assistant Commissioner of the U.S. CBP’s

Office of Trade said: "Modernizing trade processes is essential if we are going to keep pace with today’s trading environment. Article continues below "We are taking our operations

to the next level, bridging gaps between systems, creating a new era of supply chain transparency and data system flexibility." Ellen Milner, Director of Public Policy, Chartered

Institute of Taxation said: "We welcome the government’s focus on simplifying the tax system and improving customer service – rightly two key priorities for HMRC as the tax authority

heads into its third decade. A more straightforward, easy to navigate tax system could free up business owners and managers to focus on growing their businesses, rather than spending their

days overcoming bureaucratic hurdles. We especially welcome the announcement of a new approach to dealing with slow-moving income tax queries from agents. Hopefully, in due course, this can

be expanded to unrepresented taxpayers and to other taxes." Eve Williams, CEO of eBay UK, commented: "This will be welcome news for thousands of UK sellers for whom eBay is a side

hustle and a means of supplementing their household income during challenging times. By removing the paperwork associated with selling online, hopefully we will help these side hustles grow

into fully fledged small businesses."