Have you heard HMRC’s new radio ads talking about side hustles and declaring your online income? You’re not alone if you were surprised to hear such a friendly-sounding message from the tax authorities. HMRC has officially launched the ‘Help for Hustles’ campaign, and while it might sound supportive on the surface, it’s also a strong signal that they’re cracking down on undeclared online income from online sellers and side hustlers. Find out below if you should expect a HMRC letter.
What we will cover.
What the ‘Help for Hustles’ campaign is all about
Why it signals a significant HMRC crackdown on online sellers
How to figure out if you’re affected and what you should do
1. What Is the ‘Help for Hustles’ Campaign?
Visit HMRC’s ‘Help for Hustles’ official page
HMRC (HM Revenue and Customs) has rolled out a user-friendly website and a series of ads encouraging anyone with a side hustle to declare their earnings. According to HMRC, the aim is to guide people who sell products or services online—whether occasionally or as a proper business—through their tax obligations. The campaign paints a helpful picture, offering tips and resources on how to register and file taxes if you have undeclared income.
But make no mistake: a friendly front doesn’t mean HMRC is going soft. Quite the opposite—this campaign will be married with robust enforcement. The government needs money and they are targeting people with undeclared income to collect income tax. Over the past couple of years, HMRC has already been gathering data on online sellers from marketplaces (like eBay, Amazon, Etsy, and others) that are legally required to share seller information. This campaign is the next step: an all-out initiative to ensure that everyone earning money online pays their fair share of tax.
2. Why This Signals a Crackdown on Online Sellers: unpaid tax
Many online sellers and side hustlers have already received letters from HMRC requesting more information about their income. From our experience:
HMRC Know your Data: How do HMRC know about your undeclared income? HMRC has made marketplaces disclose personal details of sellers to HMRC. This means if you’re selling on major platforms like Shopify, HMRC likely already knows you exist and the level of your undeclared and declare income/tax.
Increased Enforcement Already Underway: We have been tracking how many people get in touch with us regarding letters received from HMRC telling them they have underpaid tax. We have had 100s and it has really ramped up in the last few months. We had so many calls that we made a video to help people understand what this means and what they need to do.
HMRC’s Greater Understanding of E-Commerce: A few years ago, HMRC didn’t fully grasp how online selling worked. Now, they’ve not only learned the ropes but have also invested in technology and training to identify unreported income quickly and efficiently. When we speak to HMRC now, they really understand ecommerce and know what they are looking for.
If you heard their upbeat radio advert or seen the new campaign webpage, consider it your friendly warning. They are actively encouraging people to voluntarily come forward and declare side hustle income—but if you ignore it, expect those friendly ads to be followed by less friendly letters.
Due to the increased activity from HMRC along with an additional 5000 heads to deal with tax evasion and tax fraud; we have been anticipating an enforcement campaign – but HMRC have really invested in assets and national media to kick this off.
3. Who Does This Affect?
A. Side Hustlers Selling for Profit
If you bought items specifically to resell online at a profit, you’re running a trading activity in HMRC’s eyes. This means you’re responsible for declaring that income in a tax return.
B. Digital Downloads or Online Services
It’s not just about physical goods. Selling digital downloads, online courses, or services (like freelance design, coaching, or consulting) also counts as taxable income. If you’re regularly making money from these activities, you need to register for Self Assessment.
C. Influencers and Content Creators
If you’re an influencer or content creator who gets paid through brand deals, sponsorships, or ad revenue, that income is taxable. Even small amounts can add up quickly, so make sure you know your obligations.
D. One-Off High-Value Sales
If you’ve sold personal items you already owned, this usually doesn’t trigger any tax obligations unless the item sold for over £6,000. In that case, you might owe Capital Gains Tax. You’d handle this through tax return as well.
4. What Should You Do Next?
A. Check If You Need to Register
Review Your Online Selling Activities: Ask yourself if you’re selling for profit or just clearing out old personal items.
Look at the Amount of Revenue: Even small profits from side hustles can be taxable if they exceed the allowances (such as the trading allowance).
Consider High-Value Sales: Keep an eye on any items sold for over £6,000.
Tip: We’ve created a quick questionnaire based on HMRC’s criteria on their new website. By answering a few simple questions, you can determine whether you need to disclose undeclared income and which types of income must be declared.
B. Gather Your Records
If you think you fall into any of the categories above, start collecting:
Sales Records: Dates, amounts, and platforms.
Expense Receipts: Things like shipping costs, platform fees, and inventory costs can reduce your taxable profit.
Bank Statements: Make sure they match up with your online selling records.
Having everything in order means you’ll likely owe less tax because you can properly offset allowable expenses.
C. File a Self Assessment
If you determine you need to declare this income:
Register for a UTR (Unique Taxpayer Reference) if you haven’t already.
Complete the Tax Return by the relevant deadlines (typically 31st January for online returns).
Pay any tax owed on time to avoid interest or penalties.
D. HMRC can request prior year files
HMRC are not just limited to this tax year, they will look back at historic tax years. Normally letters are sent out to people relating to 2-3 tax years. So it’s important to make sure that you gather the information for all the years you have been selling online. That includes Revenue, expenses and ultimately profit. You need these financial records to make sure your tax affairs are in order.
5. Already Received a Letter from HMRC?
If you’ve already received a letter, don’t panic—but don’t ignore it. Check out our other posts on how to respond to HMRC inquiries about your online income. The quicker you act, the easier it is to resolve any issues and avoid escalating penalties.
6. Final Thoughts
The ‘Help for Hustles’ campaign underscores just how seriously HMRC is now taking online income. This isn’t just for full-time e-commerce entrepreneurs—anyone making side income through online platforms could be in their sights. The key is to stay informed, stay organised, and stay compliant.
Remember: If you’re unsure, take the quick questionnaire we’ve linked to see what HMRC expects from you. And if you still have questions, get in touch. We’ll continue to update you as the campaign evolves.
