Therefore, the existing rules are still in force: if a person’s total income from trading or providing services online was less than £1,000 before deducting expenses in any tax year, they will not be required to report to HMRC. from your secondary income and not pay any income tax. However, if a small business owner were to earn more than this threshold, he or she would likely need to complete a tax return. If he is unsure, it is worth speaking to a lawyer or qualified professional for advice.