Taxpayers may not think they are running a business from their hobby or ‘side hustle’ activities. However, if they start to earn money from doing these activities regularly, they may be carrying on a business without realising it.
Generally, carrying on a business involves ongoing and repeated activities with the intention of making a profit. These activities can include:
- regularly providing goods or services;
- obtaining and maintaining any necessary licences or permits; and/or
- keeping records of their work.
However, a taxpayer’s activities may indicate that they are not operating a business where:
- their transactions are one-off;
- they do not intend to make a profit; and/or
- they work solely as an employee rather than independently.
Editor: Please keep us informed of all your income-earning and side hustle activities so we can help with this distinction.
