Individuals earning outside of their main employment may need to register for Self-Assessment and submit a tax return.
HM Revenue & Customs (HMRC) has reminded taxpayers to check their position if they have generated more than £1,000 in untaxed income during the last financial year.
This applies to a wide range of income streams, such as:
- Online sales of handmade goods or second-hand items
- Rental income from property or rooms
- Social media monetisation (YouTube, TikTok, Instagram, etc.)
- Freelance work, consultancy, tutoring or pet services
- Cryptocurrency trading
If your total untaxed income has passed the £1,000 threshold, it is your responsibility to notify HMRC and comply with Self-Assessment requirements.
New crypto rules increase pressure to declare gains
For anyone earning income from crypto, the pressure to comply with tax reporting is increasing fast. HMRC has made no secret of its growing interest in digital currencies, and new rules mean there is even less room for mistakes.
From 1 January 2026, crypto platforms will be required to collect and share detailed information about UK users under the OECD Cryptoasset Reporting Framework (CARF).
This will include your name, address, tax residency and full details of your crypto transactions. HMRC will be able to cross-check this data against Self-Assessment tax returns, making it much easier to spot undeclared income and capital gains.
Although crypto platforms will not submit their first reports to HMRC until May 2027, they will begin collecting your data from January 2026, meaning any undeclared gains from this point onwards will be much easier for HMRC to detect.
If you do not provide your details to the platform when asked, you could face a £300 fine, with similar penalties applying to platforms that fail to report.
Crypto investors must already report gains and income on their 2024–25 tax return, with HMRC introducing a dedicated section to capture this information.
If you sold or traded crypto in the last financial year and earned more than £1,000 in untaxed income, you may need to register for Self-Assessment.
Tax does not only apply to selling coins for cash, income from activities like mining, staking and lending can also be taxable, potentially attracting Income Tax and National Insurance.
The advantages of filing early
Completing your tax return promptly provides:
- Early clarity on your tax liability
- Time to plan and budget, with payment not due until 31 January 2026
- Reduced pressure, avoiding the peak filing period in January
Filing early gives you control and peace of mind, ensuring no last-minute surprises.
Broader implications
These requirements are not limited to those with side businesses. Landlords, crypto investors and others earning outside PAYE must also comply.
In addition, sole traders and landlords with income exceeding £50,000 should begin preparing for the next stage of Making Tax Digital (MTD), due to be implemented in 2026. This will introduce quarterly reporting using digital accounting tools.