# Do I need an accountant for a side hustle?

Pick My Accountant (https://pickmyaccountant.co.uk/answers/do-i-need-an-accountant-for-a-side-hustle/): Do I need an accountant for a side hustle? — Quick answer. Usually not at first. Side income under the £1,000 trading allowance needs no return at all; above that, registering for self assessment and filing yourself is manageable for one simple income stream. An accountant starts earning their fee when the hustle grows — multiple platforms, meaningful expenses, VAT range, or when you're deciding whether to make it a limited company.

## Key facts

- Under £1,000 gross trading income per tax year: covered by the trading allowance, no return needed
- Over £1,000: register for self assessment by 5 October after the tax year you started
- Digital platforms (Etsy, eBay, Airbnb, Uber, Deliveroo…) now report seller income to HMRC automatically
- You can claim EITHER the £1,000 allowance OR actual expenses — not both
- One-off help (£150–£300) is a sensible middle path before a monthly package

## The £1,000 allowance, properly understood

The trading allowance exempts up to £1,000 of gross trading income per tax year — gross means takings before any costs. Stay under it and there's nothing to file for that income. Go over and you must register, but you then choose: deduct the flat £1,000 allowance, or deduct actual expenses instead, whichever is bigger. A side hustle with real costs (materials, postage, mileage) usually beats the allowance quickly; a low-cost service hustle often doesn't.

## HMRC probably already knows

Since 2024, UK digital platforms report sellers' income and transaction counts to HMRC each January under international reporting rules. That doesn't create new tax — the rules on declaring were always there — but it ends the era of assuming small platform income is invisible. If you've had undeclared side income in past years, a voluntary disclosure through an accountant is dramatically cheaper than waiting for HMRC's nudge letter.

## The growth triggers for getting help

Get an accountant conversation on the calendar when any of these happen: profit approaching the higher-rate threshold on top of your salary; turnover heading towards the £90,000 VAT threshold; you're invoicing businesses that ask about your status; you're weighing sole trader versus limited company; or MTD quarterly reporting will catch you (income over £50,000 from April 2026). Until then, decent bookkeeping software and one careful January evening usually suffice.

## FAQs

**Q: My side hustle made a loss — should I still declare it?**
A: Often yes, deliberately: registered losses can usually be carried forward against future profits from the same trade, and in some cases set against other income. An unregistered loss saves you nothing.

**Q: Does the £1,000 allowance cover selling my own old stuff?**
A: Selling personal possessions isn't trading at all — no tax, no allowance needed (rare exceptions for single items sold over £6,000, where capital gains rules apply). The allowance matters when you buy or make things to sell, or sell services.

**Q: Salary plus side hustle — how does tax work?**
A: Your employment uses your Personal Allowance through PAYE; side-hustle profit stacks on top and is taxed at your marginal rate through self assessment. Budget roughly 30% of side profits (basic-rate taxpayers) for tax and NI and you'll rarely be surprised.

Updated: 2026-07-09

Source: https://pickmyaccountant.co.uk/answers/do-i-need-an-accountant-for-a-side-hustle/