Tax deadline looms for self-employed workers and those with side hustles 

People who started working for themselves between April ‘24 and April ‘25 have just days left to register for the self-assessment tax return, with the deadline to inform HMRC that they earned money this way on 5th October.

Those who earned income from self-employment in the 2024/25 tax year (6th April ’24 – 5th April ’25) – whether through side hustles, freelancing or their own business – must register for the self-assessment by HMRC’s deadline of 5th October.

Miss this deadline and it can result in penalties, fines and even heighten the risk of being investigated by HMRC, says Qdos, a tax insurance specialist for the self-employed.

By registering for the self-assessment tax return, self-employed workers are effectively informing HMRC that they have earned money via self-employment. This can include those who:

• are newly self-employed and have earned gross income over £1,000
• earned below £1,000 and wish to pay Class 2 National Insurance Contributions voluntarily to protect their entitlement to State Pension and certain benefits
• are a new partner in a business partnership
• have received any untaxed income over £2,500
• receive Child Benefit payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000

Qdos CEO, Seb Maley, said, “This is an easy tax obligation to overlook, especially given that for many people who recently started making money via self-employment, it’s a deadline that can fall well over a year after they struck out on their own.

“What’s more, the deadline’s looming. If you kicked the can down the road and haven’t yet told HMRC that you now work for yourself – whether that’s full-time freelancing or through a side hustle – time is of the essence. Overlook this deadline and you’re on the back foot, and HMRC could hit you with a failure to notify penalty, which can amount to significant sums in some cases.

“With the likes of Airbnb and Vinted now reporting sellers’ income information to HMRC, millions of people who make money by renting out their homes, selling their clothes online or even making money from crypto need to be especially aware of their tax duties. The tax office will now know who needs to register for the self-assessment and, in many cases, how much tax they need to pay.”