The UK Tax Year Explained: What It Means for Side Hustlers

6 Apr

The UK tax year runs from 6 April to 5 April.

The current tax year, 2026/27, started on 6 April 2026 and runs until 5 April 2027.
But what does that actually mean — and why should you care?

Whether you’ve been self-employed for years, just started a side hustle, or even have a full-time job and earn a bit extra on the side — this blog will walk you through what the start of the tax year means for you.

We’ll explain it as simply as possible — no jargon, no overwhelm.

🧾 First things first – what is the tax year?

The tax year is the 12-month period that the government uses to check:

How much money you made
What you spent on your business
And how much tax you need to pay

The current tax year is:
👉 6 April 2026 to 5 April 2027

You’ll need to report everything you earn during this time when you do your next Self Assessment tax return. Also new this year: Making Tax Digital for Income Tax now applies if your self-employment and property income (before expenses) is over £50,000, dropping to £30,000 from April 2027.

👶 I’m new to self-employment — what do I need to know?

If you start a side hustle or small business, and your sales are more than £1,000 in a tax year (that’s before expenses, not profit), you need to register with HMRC as self-employed.

Here’s how it works:

Start earning money from your hustle or business
Once your sales pass £1,000, register with HMRC by 5 October after the end of the tax year you started (for 2026/27, that’s 5 October 2027)
After the tax year ends, you’ll need to file your Self Assessment tax return and pay any tax due by 31 January (for 2026/27, that’s 31 January 2028)

💡 Even if you don’t owe much tax, you still need to register and submit a return if you go over that £1,000 turnover mark.

Need help registering? We’ve got a step-by-step guide 👉 Register as Self-Employed

🧑‍💼 I’ve been self-employed a while – what does a new tax year mean for me?

Think of the tax year as a reset button.

You’ll start keeping records of:

Your new income (money coming in)
Your new expenses (things you buy for your business)

You’ll still submit your tax return for the previous year (6 April 2025 to 5 April 2026, due by 31 January 2027), but everything you earn from today onward will go on next year’s return.

👉 Tip: Use a tracker like the Hustle Mate Tax Companion (available to Hustle Mate members) so you’re not scrambling at the last minute. It helps you log everything month-by-month, so there are no surprises come January.

🧐 Do I really need to do a tax return?

Great question — a lot of people don’t realise they might need to file one, even if they’re not self-employed full-time.

Here are some reasons you might need to submit a Self Assessment tax return:

✅ You earned more than £1,000 from:

Freelancing
Selling on Etsy/Vinted/eBay
Being a delivery driver or gig worker
Any kind of paid work outside of your main job

✅ You’re employed, but also:

Have a side hustle
Do freelance work
Get money from rent or dividends

✅ You or your partner claim Child Benefit, but one of you earns over £60,000

This one catches people out. It’s called the High Income Child Benefit Charge (HICBC).

If:

You (or your partner) earn over £60,000, and
You get Child Benefit, then
You have to pay some (or all) of it back through your tax return

If you’re employed and not otherwise in Self Assessment, you can now choose to pay it through your tax code (PAYE) instead of registering for Self Assessment.

Learn more about HICBC 👉 High Income Child Benefit Charge