In a move set to ease tax filing requirements, around 300,000 people will no longer need to submit Self Assessment tax returns under new measures expected to be announced today.

Tax Minister James Murray is set to unveil plans to raise the Self Assessment reporting threshold for trading income from £1,000 to £3,000. This change aims to reduce administrative burdens for individuals earning extra income through side hustles, such as social media influencers, online resellers, home bakers, and dog walkers.

While tax thresholds themselves remain unchanged, the government sees this initiative as a way to cut red tape and simplify the tax system for self-employed individuals and gig economy workers.

This adjustment is part of broader reforms to HMRC, with Mr. Murray expected to announce the measure during a speech marking the tax authority’s 20th anniversary.

Wider economic context

The announcement comes ahead of the Chancellor’s Spring Statement, where Rachel Reeves will present an economic forecast expected to pose challenges for the government. Additionally, Ms. Reeves is anticipated to implement welfare payment cuts and reduce the civil service workforce.

Commenting on the tax changes, Exchequer Secretary to the Treasury James Murray said:
 “From selling old games to creating content on social media, we are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit. 

“Taking hundreds of thousands of people out of filing tax returns means less time filling out forms and more time for them to grow their side-hustle.”