2025 Side Hustle Tax UK: How to Report Etsy, YouTube, TikTok & Uber Income

2025 UK Side Hustle Tax: Etsy, YouTube, TikTok & Uber Income Reporting Guide

Side hustles have become a crucial income source for people across the UK, from Etsy sellers and YouTube creators to Uber drivers and TikTok influencers. With the cost of living still high in 2025, more workers are turning to digital platforms and gig-economy apps to supplement their main salary. But platform income is not tax-free, and HMRC now receives far more data from marketplaces and creators’ platforms than in previous years.

This guide explains how side hustle tax works in the UK for the 2025/26 tax year, when you must start reporting your online income, and what counts as taxable earnings. For creators earning from overseas platforms, see your separate UK Creator Overseas Income Tax Guide.

What counts as side hustle or online income?

HMRC treats side hustle income the same as any other self-employed income. If you earn money from platforms, apps or digital marketplaces, you are usually classed as trading, even if it’s part-time.

Common examples of taxable platform income include:

• Ride-hailing & delivery: Uber, Bolt, Ola, Deliveroo, Just Eat
• Digital marketplaces: Etsy, eBay, Vinted, Depop, Facebook Marketplace
• Creator platforms: YouTube, TikTok, Twitch, Patreon, Ko-fi
• Online teaching & freelance sites: Fiverr, Upwork, Tutorful, PeoplePerHour
• Accommodation platforms: Airbnb, Booking.com (services-only, not property tax)

If you receive money in exchange for goods, services or content, HMRC expects you to consider whether you’re running a trade, even if it feels like a small hobby or weekend project.

When do you need to pay tax on your side hustle?

The key threshold for side hustlers in the UK is the £1,000 trading allowance.

You must register for tax if:

• Your total platform/side hustle income is over £1,000 in the tax year (before expenses).
• You want to claim expenses and your profits are lower than £1,000.
• You make a loss and want to record it for future tax years.
• You want to pay voluntary National Insurance to protect your State Pension record.

If you earn less than £1,000 from all trading sources combined, you may not need to register, provided you have no other Self Assessment obligations.

How HMRC receives data from platforms in 2025

Since 2024, major digital platforms are legally required to report seller and creator income directly to HMRC. This includes marketplace sales, influencer payouts, rental platforms and gig-economy apps.

As a result:

• HMRC already knows what you’ve earned on many platforms.
• You may receive a pre-notification letter if HMRC has your income but no tax return from you.
• Failing to declare side hustle income increases the risk of penalties and backdated tax.

How side hustle tax is calculated (2025/26)

Your earnings from platforms are added to your total income for the year and taxed using the usual Income Tax bands:

• £0 – £12,570: 0% (Personal Allowance)
• £12,571 – £50,270: 20% Basic rate
• £50,271 – £125,140: 40% Higher rate
• £125,140+: 45% Additional rate

National Insurance (self-employed NICs) in 2025/26:

• Profits below £6,845: No automatic NI credits; can pay voluntary Class 2 (£3.50/week).
• Profits £6,845–£12,569: Class 2 “treated as paid”, no payment required.
• Profits £12,570–£50,270: Class 4 at 6%.
• Profits above £50,270: Class 4 at 2%.

Which side hustle expenses can you deduct?

Platform workers and creators can deduct legitimate business costs to reduce taxable profit.

Common allowable expenses include:

• For Etsy, eBay, Depop sellers: packaging, postage, materials, printing, platform fees
• For YouTube, TikTok, creators: camera equipment, editing software, lighting, props
• For Uber, Bolt, Deliveroo: fuel, repairs, vehicle insurance, mileage (45p/25p), bike maintenance
• General deductibles: home office costs, phone & internet, advertising, subscriptions

You can choose between:

• Trading allowance: deduct £1,000 instead of expenses
• Actual expenses: deduct all genuine business costs

How to register for tax on side hustle income

If your platform earnings exceed £1,000, you must register as self-employed and complete a Self Assessment return.

Key 2025/26 deadlines:

• 5 October 2026: Register as self-employed
• 31 October 2026: Paper return deadline
• 31 January 2027: Online return & tax payment deadline

You’ll need to keep accurate digital records, especially with MTD ITSA coming:

• If your total self-employed + property income was £50,000+ in 2024/25, you enter MTD from April 2026.
• If it is £30,000+ in 2025/26, you enter MTD from April 2027.

Practical example: Etsy seller with a YouTube channel

Example income:

• Etsy sales: £4,200
• YouTube AdSense: £1,300
• Total platform income: £5,500

Expenses:

• Materials: £900
• Postage & packaging: £480
• Software & editing tools: £300
• Phone & broadband share: £240

Total expenses: £1,920

Taxable profit: £5,500 – £1,920 = £3,580

Tax and NIC applied:

• Income Tax: depends on your total salary + profits
• Class 4 NIC: £0 (profit below £12,570)
• Class 2 NIC: “treated as paid” (profit above £6,845)

FAQ: UK Side Hustle Tax

Do I need to report my side hustle even if I have a full-time job?

Yes. PAYE covers only your salary. Platform income must be reported separately.

Does HMRC see my Etsy, YouTube or Uber earnings?

Yes. Platforms now share seller/creator income with HMRC automatically each year.

Can I use the £1,000 trading allowance?

Yes — but only once per tax year across all side hustles combined.

Do I need a business bank account?

No, but it makes record-keeping much easier and helps avoid filing mistakes.

What if I earn under £1,000?

You usually don’t need to register with HMRC, unless you want to claim expenses or file for another reason.

What if I get paid in dollars (YouTube, TikTok, Patreon)?

It is still taxable in the UK. See the UK Creator Overseas Income Tax Guide for full rules.

Conclusion

Side hustles and platform income are now firmly on HMRC’s radar. Whether you drive for Uber on weekends or run a growing TikTok or Etsy business, it’s essential to know when to register, what counts as taxable income and which expenses you can claim. Keep digital records, understand the £1,000 trading allowance and stay ahead of Self Assessment deadlines to avoid penalties.

For wider tax bands and allowances, see your 2025 UK Income Tax Guide. For fully detailed deductions and NI guidance, visit 2025 UK Tax Deductions & Allowances.