Side Hustle Tax Tips for Beauty & Wellness Professionals: What You Need to Know
Running a salon or wellness business, offering treatments, or planning retreats is already a lot to manage. But what if you’ve got a side hustle too—like selling skincare, hosting occasional workshops, or offering online wellness classes? Extra income is amazing, but it also comes with extra responsibilities.
With new HMRC rules, it’s more important than ever to know what counts as taxable income, how to stay compliant, and how to protect your peace of mind. Let’s break it down in simple, practical steps.
The £1,000 Trading Allowance
If you earn under £1,000 a year from your wellness business or from other side gigs, you don’t need to tell HMRC. That’s called the trading allowance.
But once you go over £1,000, whether it’s selling beauty products, running yoga classes, or hiring out your retreat space—you need to declare that income and potentially pay tax on it.
There’s some good news on the horizon. HMRC has announced plans to increase the Self-Assessment reporting threshold from £1,000 to £3,000 by the end of 2029.
That means in the future, you’ll be able to earn more from side hustles—like wellness workshops, skincare sales, or retreat bookings—before needing to file a full Self-Assessment return.
But remember: even if you’re under the threshold, it’s still important to keep records and declare income where necessary. Staying organised now means you’ll be ready when these changes come into play.
The New HMRC Online Tool
To make things easier, HMRC has introduced a new online tool that lets you quickly check whether your side income needs to be declared.
It asks you a few questions about how much you’ve earned, how often, and what kind of work you’ve done. Based on your answers, it tells you whether you need to register for Self-Assessment.
This is a brilliant way to avoid guesswork and gives you peace of mind that you’re doing things properly.
Apps and Platforms Are Sharing Data
This is the big one: HMRC now receives income information directly from online platforms.
That includes apps like Airbnb, Uber, Etsy, Vinted, eBay and more. So if you’re using apps to sell wellness products, book out your space, or offer services, HMRC already has a record of your income.
That means it’s harder to “forget” or under-report earnings, and much better to stay ahead by keeping clear records yourself.
Keep Records (Even for Small Side Hustles)
Even if your side hustle is small, good records will save you stress:
Track your sales (classes, workshops, products)
Keep receipts for supplies, travel, and space hire
Note mileage if you travel to retreats or wellness fairs
Save all invoices and online platform statements
Having this ready makes tax season smoother—and if you do need to file a return, it’s much easier.
Side Hustle or Business?
HMRC looks at more than just the money. If you’re advertising your services, making repeat sales, or running your side hustle in a structured way—it may be classed as a business.
That means you’ll likely need to register for Self-Assessment, even if you’re under certain thresholds.
What This Means for Beauty & Wellness Pros
For beauty and wellness professionals, these changes affect things like:
Selling skincare products online alongside salon treatments
Running occasional wellness retreats or workshops
Teaching online yoga, meditation, or self-care classes
Renting out your space on platforms like Airbnb or Peerspace
The key takeaway: if money is changing hands, check whether it needs to be declared.
Final Thoughts: Stay Calm, Stay Compliant
The good news is these changes are about making things clearer and simpler for small business owners and side hustlers.
✔ The online tool means no more second-guessing.
✔ The £1,000 allowance gives you breathing room.
✔ And being aware that apps share data with HMRC means you won’t get caught off-guard.
You started your wellness business to help people feel good—not to get lost in tax stress. With a little awareness and organisation, you can keep your finances in flow and your energy focused where it belongs.
Want extra support staying on top of your numbers?
Download my free guide: Master Your Business Finances—created especially for beauty and wellness entrepreneurs.
