How HMRC taxes hobbies and side hustles

More and more of us are earning extra money on the side, whether it's out of need or for personal enjoyment; but do you know that this may mean having to pay more income tax? In this episode, Lauren explains how HMRC will seek to tax those who make extra income from hobbies or side hustles.

Access the full article which is regularly updated here: https://www.ridgefieldconsulting.co.uk/tax-guides/how-hmrc-taxes-hobbies-and-side-hustles/

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Chapters

• 0:59 What’s the difference between a hobby and a side hustle?
• 2:35 Why does HMRC tax hobbies and side hustles?
• 3:30 How much can I make through my hobby before I have to pay tax?
• 4:38 How does the trading allowance work?
• 8:07 How much can I earn from my side hustle before I have to pay tax?
• 12:27 Do I have to register my hobby or side hustle as a business?
• 13:26 Can I claim for expenses from my hobby or side hustle?
• 15:39 Do I have to charge VAT on my hobby on side hustle?
• 16:50 What is the hobby tax?
• 18:50 Get help with your hobby or side hustle earnings