If you’ve recently started earning income outside your regular job — whether through a side hustle, freelance work, online content, or rental income — you may need to file a Self Assessment tax return for the first time.
Many people assume tax is only handled through PAYE, but once you earn additional income, HMRC may require you to register and report it yourself.
At Vales Tax Return, we help first-time filers understand what’s required, when to register, and how to file correctly — without stress.
What Is a Self Assessment Tax Return?
A Self Assessment tax return is HMRC’s way of collecting tax on income that isn’t fully taxed through PAYE.
When you file a Self Assessment, you must:
- Tell HMRC about all taxable income
- Declare profits, losses, and expenses
- Calculate (or confirm) the tax you owe
The responsibility is on you, not your employer.
Do I Need to File a Self Assessment?
You will usually need to file a Self Assessment if you have any additional income, such as:
- A side hustle (YouTube, Etsy, online sales, freelancing)
- Rental income (including Airbnb)
- Self-employment income
- Commission or gig-economy earnings
- Overseas income
- Capital gains
- Untaxed income of any kind
The £1,000 Side Hustle Rule Explained
For the 2023/24 tax year, if your side hustle or self-employed income exceeds £1,000, you must:
- Register with HMRC, and
- File a Self Assessment tax return
This £1,000 is known as the trading allowance.
Important:
Even if:
- You earn less than your Personal Allowance, and
- You don’t end up paying tax
You still must register and file if your side income is over £1,000.
Example: Do I Need to Register?
If you earned:
- £4,000 from YouTube between 6 April 2022 and 5 April 2023
Then:
- You must register for Self Assessment by 5 October 2023
- You must file a tax return by 31 January 2024
What About My Personal Allowance?
Everyone is entitled to a £12,570 Personal Allowance (subject to income limits).
This means:
- Income below this amount is usually tax-free
However:
- The £1,000 side hustle rule still applies
- Reporting is required even if no tax is due
How Do I Register for Self Assessment?
Step 1: Register with HMRC
You can register:
- Online via GOV.UK, or
- By calling HMRC
Once registered, HMRC will issue your Unique Taxpayer Reference (UTR).
Step 2: Gather Your Information
You’ll need:
- Payslips or P60 (if employed)
- Details of side hustle income
- Records of expenses
- Bank statements and invoices
When Is the Self Assessment Deadline?
Key deadlines to remember:
- Register by: 5 October following the tax year
- File your tax return by: 31 January
- Pay any tax owed by: 31 January
Missing deadlines can result in penalties and interest, even if no tax is due.
Why Accurate Records Matter
HMRC can ask to see your records at any time.
You should keep:
- Income records
- Receipts and invoices
- Expense breakdowns
Records must usually be kept for at least 5 years.
How Vales Tax Return Helps First-Time Filers
We specialise in helping new and first-time tax filers, including:
Registering you with HMRC- Preparing and filing your first Self Assessment
- Explaining what you owe (or why you don’t)
- Claiming allowable expenses
- Avoiding HMRC penalties
No jargon. No confusion. Just clear guidance.
Filing Your First Tax Return? We’ve Got You.
If this is your first time dealing with Self Assessment, you don’t have to figure it out alone.
Get help registering with HMRC File your first tax return correctly Avoid costly mistakes and penalties
Contact Vales Tax Return today — we’ll guide you every step of the way.
FAQs
Do all employees need to file a tax return?
No. Most employees are taxed through PAYE — unless they have additional income.
Do I need to file if I made no profit?
Yes, if your income exceeds £1,000, even if expenses reduce profits to zero.
What happens if I don’t register?
HMRC can issue penalties and charge interest for late registration and filing.
