If you earned more than £1,000 from your side hustles in the last tax year, you must register for self-assessment.

If you miss October 5th. Deadline For registration and then failed to send in one Tax Back on time, you will likely face a penalty.

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Oh Side hustle is something you do to earn extra income, such as selling things online, doing freelance work alongside your regular job, or creating money From tasks like pet sitting, dog walking, or babysitting.

How much you earn is important. If you earn less than £1000 in a tax year from your hustle, it doesn’t count as taxable income, and you don’t need to declare it.

But, once you start earning more than that, you have to register as self-employed and start paying tax on the amount earned.

The limit is based on your profit after deducting expenses. For example, if you were making and selling Jewelryyou can deduct the amount you spent on buying materials from your total earnings.

You only need to file and pay tax if your remaining profits for the year are more than £1,000.

You also need to register if any of the following have applied in the previous year:

• You were the sole trader.
• You were a partner in a business partnership.
• Your total taxable income was more than £150,000.
• You pay capital gains tax when you sell or ‘dispose’ of something that has increased in value.
• You had to pay the High Income Child Benefit charge.

You may also need to register and send a tax return if you have untaxed income, such as:

• Income from property rental
• Tips and Commissions
• Income from savings, investments and dividends
• Foreign income

And there are some scenarios where you don’t need to send in a return, but you may choose to anyway. For example, if you want:

• Claim some income tax relief.
• Prove you are self-employed, for example claiming tax-free childcare or maternity allowance
• Pay voluntary national insurance contributions.

You can check if you need to self-diagnose. Online tool of Govt.

The last date for registration is October 5. There is no penalty for registering after that, but you will be fined if you haven’t signed up, filed your tax return, and paid your bill by January 31st.

If you miss the October 5 deadline, you should sign up as soon as possible. This means you’ll be set up and able to file your return on time.

There are actually two main deadlines for filing returns. If you want to file a paper return, it must be filed by October 31. If you are submitting online, you have until January 31st.

If you miss the filing deadline, you face an immediate £100 penalty. If your return is more than three months late, you will have to pay an extra £10 a day for a maximum of 90 days.

If you’re more than six months late, you pay a penalty worth 5% of your total tax bill – or £300, whichever is greater – and then another if you’re 12 months late. The penalty will be 5% or £300.

You also need to pay all the money you owe by January 31, or you’ll face a late payment penalty.

If you are late for more than 30 days, you will have to pay 5% of the tax due as penalty.

If you are late by six months, you will pay another penalty worth 5% of the outstanding tax and then pay the same again in 12 months.

HMRC Charge interest on late tax payments. Interest is charged from the date of payment to the date of payment and is automatically compounded.

There is one Helpful calculator on the gov.uk website which you can use to calculate how much your late payment fee will be if you miss your deadline.

You can challenge any penalty if you have a reasonable excuse. You usually have 30 days from when your penalty was issued to contact HMRC or appeal. If you miss a deadline, you must provide a reason.

Taxman says examples of reasonable excuses include:

• Your partner or another close relative died shortly before the tax return or payment deadline.
• You had an unexpected hospital stay that prevented you from dealing with your tax affairs.
• You had a serious or life-threatening illness.
• Your computer or software failed while you were preparing your online return.
• Problems with HM Revenue and Customs (HMRC) online services
• Fire, flood or theft prevented you from completing your tax return.
• Postal delays you couldn’t have predicted.
• Delays related to your disability or mental illness
• You did not know or misunderstood your legal obligation.
• You relied on someone else to send your return, and they didn’t.

Whatever the reason, you should send your return or payment as soon as possible.