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Government set to scrap tax returns for 300,000 Brits with 'side-hustles'
11 March 2025, 06:00 | Updated: 11 March 2025, 09:23
Some 300,000 people will no longer have to file tax returns, in new measures set to be announced later today.
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LBC understands that tax minister James Murray will later announce plans to triple the Self Assessment reporting threshold for trading income from £1,000 to £3,000.
The Government believes this will slash admin for hundreds of thousands of people with ‘side hustles’, like influencers or those trading old clothes online, baking cakes or dog-walking.
The tax thresholds will not change but the Government sees this as a way to slash red tape and make the tax system simpler for people.
The move is part of bigger plans to reform HMRC and Mr Murray will announce it as part of a speech to mark the 20th anniversary of the HMRC.
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Mr Murray’s speech comes ahead of the Chancellor’s Spring statement later this month where Rachel Reeves will present the watchdog’s economic forecast which is expected to be difficult for the Government.
Ms Reeves is also expected to slash welfare payments and cut the civil service headcount.
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.”
