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Small amounts, plain records and your first tax season
Side income usually starts small, and small amounts are easy to ignore. The trouble starts months later, when you need to report them and the details are scattered across apps, bank statements and messages.
Assume it counts
In most countries, income from side work is taxable, even when it's occasional or small. Some places have thresholds or simplified regimes for small earners. Your tax authority's website is the right place to check which rules apply to you. In Brazil, the Receita Federal publishes guidance on income from self-employed work and on the MEI regime for individual micro-entrepreneurs.
What a plain record looks like
A spreadsheet with five columns is enough to start:
- Date
- What the money was for
- Amount received, after the platform's fee
- The platform's fee, if any
- Related costs, such as materials, postage or travel, with the receipt saved
Update it once a week, in one of your shallow windows. Ten minutes on a Sunday is enough.
Keep payouts separate if you can
Using a separate account for side income makes the record almost write itself. Many banks offer free secondary accounts. It also makes it easier to see whether the work is worth the hours you give it.
Ask early
If you're unsure how to report the income, ask an accountant or your tax authority before the deadline, not the week of it. Questions in March are cheaper than corrections in December.
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