Compliance

Self-Assessment Thresholds Raised to £3,000: What It Means for Side Hustlers

With the UK government changing trading, property and other income thresholds for Self Assessment to £3,000, many casual earners and gig workers will see a lighter tax burden.

By NomadicTax Research Team • 5-8 min read • November 23, 2025

## What’s Changing Effective within this Parliament, the UK government will align and increase the Self Assessment reporting thresholds for trading, property and "other taxable" income to **£3,000 gross each**. This replaces the separate lower thresholds currently applied. Taxpayers with income below these levels may be able to **avoid filing a full Self Assessment return**, using instead a simpler digital reporting service. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-spring-2025-simplification-administration-and-reform/tax-update-spring-2025-simplification-administration-and-reform-summary?utm_source=openai)) ## Who’s Affected - **Side hustlers & gig economy workers** earning small amounts from online sales or services. If your gross income from trading or property is under £3,000, you likely won’t need to file Self Assessment. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-spring-2025-simplification-administration-and-reform/tax-update-spring-2025-simplification-administration-and-reform-summary?utm_source=openai)) - **Property owners**: small landlords with low rental income could fall under the threshold. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-spring-2025-simplification-administration-and-reform/tax-update-spring-2025-simplification-administration-and-reform-summary?utm_source=openai)) - **People with "other taxable" income** such as casual commissions or royalties. The £3,000 level applies here too. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-spring-2025-simplification-administration-and-reform/tax-update-spring-2025-simplification-administration-and-reform-summary?utm_source=openai)) ## Practical Guidance: What You Should Do - **Check your gross income from each category**. If trading + property income are both under £3,000, you may qualify. But if either exceeds £3,000, you still need to file. - **Keep records**: basic records of income and expenses will still be essential, even if you're using the digital reporting route. HMRC will need evidence. - **Consider staying in Self Assessment** if you want to claim certain expenses not supported in digital reporting, or if your income fluctuates. - **Transition smoothly**: watch for forthcoming guidance from HMRC clarifying how to opt out or switch to the new reporting service. It will take time for digital tools to be ready. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-spring-2025-simplification-administration-and-reform/tax-update-spring-2025-simplification-administration-and-reform-summary?utm_source=openai)) ## Example Scenario Alice sells handmade jewellery online and made £2,800 gross from sales last year, and £150 in rental income from a room she occasionally lodges. Under old rules she would have to file Self Assessment because property income triggered the requirement. Under the new rules, her **trading income is under £3,000** and property income is also low—she may **no longer need a full Self Assessment**, reporting via the digital service instead. ## Key Implications - **Administrative relief**: HMRC estimates up to **300,000 taxpayers** will be freed from the requirement to file returns for low levels of miscellaneous income. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-spring-2025-simplification-administration-and-reform/tax-update-spring-2025-simplification-administration-and-reform-summary?utm_source=openai)) - **Behavioural change**: taxpayers may be more willing to undertake side income without fear of complex filings. - **Revenue effect**: unlikely to reduce tax collected significantly (because most under-threshold income is modest), but may increase compliance by focusing on larger cases. ## FAQs **Q: Does this change how much tax I pay?** A: Not directly. It just changes whether you *must file* a return. If you still have taxable income, you’ll pay tax as usual. **Q: When does this take effect?** A: These changes are set to happen *within this Parliament*. Specific implementation dates will depend on regulations; stay tuned for HMRC updates. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-spring-2025-simplification-administration-and-reform/tax-update-spring-2025-simplification-administration-and-reform-summary?utm_source=openai)) **Q: What if I’ve been filing Self Assessment?** A: You can choose to continue if helpful, especially if you benefit from detailed deductions; you’re not obliged to leave Self Assessment until compelled. --- ## Action Checklist - Calculate all your income by category (trading, property, other) - Compare each to the new £3,000 gross threshold - Keep solid records of allowances and expenses - Watch for HMRC guidance or new digital portal roll-out --- *This change represents a big win for casual, part-time, or hobby income earners. Reduced paperwork and penalty risk, with clearer lines on when you need to file.*