How Much Can I Earn Before Declaring to HMRC? 💷📄| Accountants In Essex

Whether you're side hustling, freelancing, or just earning a bit of extra income online, one of the most common questions I hear is:"How much can I earn before I have to tell HMRC?"

In this blog, I’ll break it all down so you know exactly when you need to declare income, whether or not you need to do a Self Assessment tax return, and how accountants in Essex (like me 👋) can help make it simple.

The Basic Tax-Free Allowance UK (2024/25)

The good news? You can earn up to £12,570 per year completely tax-free thanks to the UK’s Personal Allowance.

This applies to most people, whether you're:✅ Employed✅ Self-employed✅ Freelancing on the side✅ Receiving pension income

If your total income for the year is under £12,570, you usually won’t pay any income tax.

BUT... Do You Still Need to Tell HMRC? | Accountants In Essex

Yes—depending on what type of income you’re earning, you may still need to declare it, even if it’s under the tax-free threshold.

Here’s how it works 👇

Earning From a Side Hustle or Freelancing?

If you’re self-employed or doing casual work (e.g. Etsy, eBay, hairdressing, consulting), the rule is:

💼 You can earn up to £1,000 per year in trading income without declaring it—this is called the trading allowance.

BUT if you earn over £1,000 (even just £1 over), you’ll need to:

• Register with HMRC as self-employed

• Submit a Self Assessment tax return

• Possibly pay tax and National Insurance

This applies even if you're also employed elsewhere or just earning part-time.

Earning From Property?

If you rent out a room, Airbnb your home, or have a buy-to-let property:

🏠 You can earn up to £1,000 in rental income per year tax-free under the property allowance.

If you earn more than that, you must:

• Declare the income to HMRC

• Submit a Self Assessment tax return

Working a Job + Side Income?

If you're employed and earning extra on the side, HMRC may not know about your side income unless you tell them.

Even if your side income is under £12,570 (including employment), if it’s over £1,000 trading or property income, you’re expected to register and file a tax return.

When to Register for Self Assessment

You must register for Self Assessment if:📈 You earn over £1,000 from self-employment🏘️

You earn over £1,000 in rental income🎯 You want to claim tax reliefs📉 You earn income not taxed at source (e.g. dividends, crypto, freelance)

Deadline to register: 5 October following the end of the tax year you earned the income.

Still Unsure If You Need to Declare?

If you’re asking, "How much can I earn before declaring to HMRC?", and still not sure—you’re not alone. It can get complicated if you have multiple income streams or are close to the thresholds.

That’s where working with expert accountants in Essex comes in handy. We help individuals across the UK understand if they need to file, how to register, and how to avoid fines and overpaying tax.

Final Thoughts

💡 You can earn:

• £12,570 per year tax-free via the Personal Allowance

• £1,000 from trading or property income before declaring

BUT once you cross those thresholds, HMRC expects you to report it—even if you don’t owe tax.

Need Help With Your Self Assessment or Declaring Income?

Whether you’re running a side hustle, freelancing, or renting out property, I can help you figure out exactly what needs to be declared, and make sure you stay compliant.

📩 Reach out today for professional advice from trusted accountants in Essex—and let’s take the stress out of tax.

💬 Got a question about when to declare income? Drop it in the comments!

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