Becoming a Self-Employed Photographer: A Guide for Your Side Hustle

Create a Side Hustle

One way to test the waters is to start photography as a side hustle. This means earning income from photography in addition to your existing job or business.

Do I Need to Tell HMRC?

The short answer is: it depends!

You can earn up to £1,000 tax-free due to the annual trading allowance. If your gross trading income is below this level, you do not need to register your business with HMRC. However, there are some important points to note:

Turnover vs Profit

The £1,000 trading allowance applies to gross income (turnover) before expenses, not profit (the amount left after expenses).

Gross Trading Income Limit

When considering your income, remember that it includes all trading sources. If you run other self-employed businesses, their turnover counts too. Your gross turnover from your photography side hustle and any existing businesses must remain below £1,000 to qualify for the exemption.

Keep Records

Even if your gross trading income is below the £1,000 limit, you still need to keep business records. HMRC may want to confirm that you correctly claimed the allowance. Your records don’t have to be complex; a simple spreadsheet with dates, descriptions, and amounts will suffice. Keep any supporting documents like emails, receipts, or invoices.

Expenses

Typically, you can claim expenses to reduce your gross turnover to calculate your profit. The types of expenses you can claim will be discussed in further posts. For now, even if your turnover exceeds £1,000, you can still claim the allowance instead of expenses if it benefits you more.

For example, if your side hustle generates gross income of £1,300 and you incur expenses (like travel or printing) of £500, your profit would be £800 without considering the trading allowance. However, if you claim the trading allowance of £1,000 instead, your profit would drop to £300.

Notifying HMRC

If your gross turnover exceeds £1,000 in any tax year, you must notify HMRC and complete a tax return, regardless of your expenses.

• The deadline for notifying HMRC is 5 October following the tax year in which the limit was breached.

• You must complete your tax return by the following 31 January.

  
  

For example, if your trading income for the tax year 2024/25 exceeds the £1,000 trading allowance:

• You must notify HMRC of the need to complete a self-assessment tax return by 5 October 2025.

• The tax return must be received by HMRC no later than 31 January 2026.

  
  

Drawbacks of Claiming the Trading Allowance

In some cases, it may be more beneficial to register with HMRC and complete a tax return, even if you continue to claim the trading allowance. This is true if you want to claim loss relief, pay voluntary Class 2 National Insurance, or claim childcare or maternity benefits.

If you have questions about your situation, feel free to contact us to discuss your needs.

Types of Hustle

Here are some ideas for your photography side hustle:

• Studio & Portraiture: Start by taking photos of friends and family. You might not charge initially, but this can lead to referrals.

• Food Photography: Approach local restaurants or pubs that do their own photography. Offer to take some photos at a discounted rate, with the option for them to purchase any they want to use.

• Product Photography: Local manufacturers or crafters may need photos of their products. Reach out and offer your services.

• Craft Fairs: Selling your photographs at local craft fairs can be a great source of income.

• Website: Create a website to sell your photos. While setting it up is usually inexpensive, driving traffic to your site and marketing your products is a skill in itself. Consider using your website to support your other side hustles. Once you have examples of the photography you want to pursue, create the website to bolster your business.

  
  

Start a Full-Time Business

Your side hustle may become successful, leading you to consider photography as a full-time business.

View this blog post for further tips on starting and running a photography business.

Remember, the goal is to simplify your financial life so you can spend more time behind the lens and less time on paperwork. If you need help with tax and accounting, don’t hesitate to reach out. We’re here to assist you!