UPDATE: A new online calculator has just been launched to help UK side hustlers avoid potential HMRC fines as they navigate the Self-Assessment threshold for income earned on platforms like Vinted. This tool is critical as an increasing number of Brits transition to professional selling and could be at risk of penalties come the January 31, 2026 deadline.
With a staggering 50 percent rise in the search term ‘Vinted pros’ since last year, the urgency for sellers to understand their tax obligations has never been greater. The trend, spurred by the festive season’s ‘Thriftmas’ where over £2 billion was spent on second-hand gifts, means many individuals seeking extra holiday income may inadvertently exceed the £1,000 threshold for self-employment earnings.
Under current regulations, anyone earning more than £1,000 from self-employment, freelance work, or side gigs must register with HM Revenue and Customs (HMRC) and submit a Self-Assessment tax return. Importantly, even those earning less than this threshold are strongly advised to maintain comprehensive records of all income and expenses.
As of now, nearly 39 percent of Brits are involved in at least one side hustle, with average earnings approaching £11,000. This has led to heightened concerns as hundreds of thousands risk penalties by neglecting to assess whether they need to file a tax return for the 2024 to 2025 tax year, according to a report by the Daily Record.
GoSimpleTax, a Self-Assessment tax software company, stresses the importance of their newly introduced free online calculator. The tool allows users to quickly determine their take-home pay by deducting Income Tax and National Insurance from their total side-hustle earnings. Additionally, it enables users to factor in business expenses, providing a clearer picture of their estimated tax liability.
“Side hustles are booming, but many people are unaware of their tax responsibilities,” said Mike Parkes, Technical Director at GoSimpleTax. “If you earn more than £1,000 a year from activities such as selling on Vinted or Etsy, delivering via Uber Eats or Deliveroo, creating content on TikTok, or freelancing on platforms like Upwork, you may need to register with HMRC and file a tax return.”
Parkes emphasized that the £1,000 threshold may sound high, but it equates to just £84 per month, an easily exceeded amount for many without their knowledge. The GoSimpleTax calculator is designed to help users assess what they owe quickly, allowing for better financial planning to avoid unexpected tax bills or penalties.
As the side hustle culture continues to expand, with platforms like Vinted leading the charge, it is crucial for sellers to be proactive about their tax obligations. The new calculator from GoSimpleTax offers an immediate solution to help individuals navigate these responsibilities effectively.
For those with side hustles, now is the time to act. Using the GoSimpleTax tool can ensure compliance and peace of mind as the January 31, 2026, deadline approaches.
Stay tuned for further updates as more developments unfold regarding tax regulations for self-employed individuals.
