If you’re earning extra income—whether through cryptocurrency investments, online selling, freelance work, or other side hustles—there are crucial tax changes and reminders you must be aware of as 2026 approaches.

Crypto Investors: Reporting Rules Take Effect in 2026

Starting in January 2026, UK cryptocurrency holders will face new compliance requirements aimed at increasing transparency and ensuring everyone pays their fair share of tax. Individuals who hold crypto assets will be required to provide personal details to crypto service providers. Failing to comply could result in penalties of up to £300.

• The new rules are designed to help HMRC track crypto profits and close the tax gap.
• Crypto platforms must collect and report personal information from UK clients, streamlining tax enforcement.
• Begin preparing by checking your transaction histories, gathering documentation, and familiarizing yourself with Self Assessment procedures if you’ve made gains or received income from crypto activities.

Side Hustles and Extra Income: Register for Self Assessment

Anyone generating extra income—whether from online sales, content creation, dog walking, property letting, or other “side hustles”—is urged to check if they need to register for Self Assessment and file their tax return early.

• If cumulative untaxed income exceeds £1,000 in a tax year, registration for Self Assessment is usually required.
• Early registration and filing helps avoid the January deadline rush and reduces the risk of penalties or late payment interest.
• HMRC offers guidance and digital tools (including the HMRC app) to help new earners get summer-job ready and stay compliant.

Why These Changes Matter

The UK government is modernising tax administration and intensifying efforts to bridge the “tax gap” (uncollected tax revenue). In the 2023–24 tax year, the gap was estimated at £46.8 billion—over 5% of all tax due. With the rise in digital work, gig economy activities, and crypto trading, tighter reporting and compliance are seen as essential to fairness and funding public services.

Tips for Compliance

• Start tracking all side income and crypto activity now. Keep detailed records, including receipts, invoices, and trading histories.
• Register for Self Assessment as soon as you cross the £1,000 untaxed income threshold or if you have crypto gains. Don’t wait for the last minute.
• Beware of scams. HMRC warns of increased phishing and tax scams. Only use official channels to register or file returns.
• Check HMRC’s digital resources. The HMRC website and app offer user-friendly tools, calculators, and webinars to keep you on track.

Final Thoughts

With new crypto reporting requirements and a sharp focus on side hustle income, 2026 will be a landmark year for tax compliance in the UK. Proactive action now means peace of mind later—and ensures no nasty surprises from HMRC. For more information, visit the official HMRC website or use the app to get started today.