NEWS: Self-assessment Reporting Threshold now £3000: What Side Hustlers, Etsy Sellers & TikTok Creators in Dartford, Gravesend & Bexleyheath Need to Know
Big news for small business owners and side hustlers! The government has announced an increase in the tax-free trading allowance, jumping from £1,000 to £3,000. But what does this mean for businesses in Dartford, Gravesend, and Bexleyheath? Let’s break it down.
Who Does This Affect?
If you have a small side business, this change could make life easier. It applies to people earning from:
- Selling online (e.g., clothes, vintage items, handmade crafts)
- Dog-walking, gardening, or handyman work
- Taxi driving or food delivery
- Content creation or freelancing on the side
- Even OnlyFans creators or digital content sellers.
- Or anyone earning any form of side income.
If your total trading income (before expenses) is less than £3,000, you won’t need to file a tax return anymore.
Do You Need to Do Anything?
If your side business earns under £3,000, you don’t need to register for Self-Assessment. No tax return, no hassle. If you’re already registered, you may be able to deregister and save time on paperwork.
What If You Already File a Tax Return but Earn Less Than £3,000?
If you’ve been submitting a tax return for your side business but make less than £3,000, you may no longer need to do so. HMRC is expected to provide guidance on how to opt out of filing. We recommend checking with an accountant before making any changes.
Does This Mean You Get £3,000 Tax-Free?
Not exactly. This increase means you don’t have to report or pay tax on your first £3,000 of trading income. However, if you earn over this amount, you will need to declare everything and pay tax on the full amount (minus any deductible expenses).
What Should You Do Next?
This is a positive change for small businesses and side hustlers in our area. Less admin means more time to focus on growing your business!
Want to stay updated on tax changes that could benefit you? Sign up for our Blue Rocket Accounting email list today! We’ll keep you in the loop with the latest updates and advice to help your business thrive.
Want to Explore More About Accounting In Dartford?
We think you’ll find the below blogs quite intersting
- Top 5 Accounting Tips for Small Businesses in Dartford | Blue Rocket
- How to Choose the Right Accountant in Dartford: Key Considerations | Blue Rocket
- Funniest Business Names Around Kent and The South-East | Blue Rocket
