Side Hustle Tax Checker
There is no new side-hustle tax-free limit. The 2024 change was platform <em>reporting</em> (digital-platform operators now share seller data with HMRC), not a new tax threshold. The figure that matters for tax is the long-standing <a href="https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income">£1,000 trading allowance</a>: gross side-hustle income of £1,000 or less may not need to be reported. Above that level, your taxable side profit stacks on top of any salaried income, which means the first pound of profit is often taxed at 20 per cent or 40 per cent, not at zero. This checker applies the correct rules so you can see where you stand for the 2026/27 tax year.
Total receipts from your side activity before any deductions. Use your gross income, not the net payout after platform fees (platform fees are a cost you deduct separately).
Allowable costs including cost of goods sold, postage, packaging and other direct costs. The calculator automatically picks the better of your actual costs or the £1,000 trading allowance.
Your day-job salary or other income already being taxed through PAYE. This determines which tax band your side profit falls into. If you have no other income, enter 0.
This is an estimate only. It assumes you are a UK resident sole trader in 2026/27 and does not account for pension contributions, gift aid, or personal-allowance tapering above £100,000. Class 4 NIC is on the side-hustle profit alone. If you owe tax, you need to register for <a href="https://www.gov.uk/register-for-self-assessment">Self Assessment</a> by 5 October after the end of the tax year in which the income arose. If a platform-reporting letter prompted this check, see our <a href="/services/hmrc-letter-online-sales">HMRC letter service</a>. If your gross income is approaching £90,000, check the <a href="/calculators/vat-threshold-tracker">VAT threshold tracker</a>.
Frequently asked questions
Was there a new side-hustle tax-free limit introduced in 2024?
No. What changed in 2024 was platform reporting: digital platforms (eBay, Vinted, Etsy and others) are now required to share seller data with HMRC annually. This is a reporting obligation on the platforms, not a new tax limit on sellers. The tax-free figure for trading income remains the long-standing £1,000 trading allowance. See our guide to platform reporting rules and the trading allowance explainer for the full picture.
Does the £1,000 trading allowance apply on top of the personal allowance?
The trading allowance and the personal allowance are separate and work differently. The trading allowance (£1,000) is a deduction against gross trading income at the bottom of the calculation: if your gross income is £1,000 or less, you may not need to report it at all. The personal allowance (£12,570 in 2026/27) is then applied to taxable income. However, if you have employment income, your personal allowance is usually already used against your salary. That means your side-hustle profit is taxed from the first pound at your marginal rate, not sheltered by a second personal allowance.
Do I have to pay tax on my side hustle if I earn under £12,570?
It depends on whether you have other income. If you have no other income and your side-hustle profit (after the trading allowance or actual costs) is below £12,570, no income tax is due. However, Class 4 NIC applies to profits above £12,570, so at very low profit levels NIC is also zero. If you have a day job, your personal allowance is already used by your salary: the first pound of taxable side profit is taxed at your marginal rate (20 per cent if you are in the basic band, 40 per cent in the higher band).
Does selling personal belongings online count as a side hustle?
Not usually. Selling personal possessions you already own (second-hand clothes, unwanted gifts) is generally not trading and falls outside income tax. What matters is whether you are trading: buying goods to resell, making items to sell or carrying on a commercial activity with a view to profit. HMRC's badges of trade (set out in their Business Income Manual from BIM20205 onward) guide this judgement. There is no single sales count or income threshold that defines trading. If you are genuinely just decluttering, you are unlikely to owe tax. If you are sourcing and reselling regularly for profit, you almost certainly are trading.
What is the Self Assessment registration deadline for side-hustle income?
You must notify HMRC by 5 October following the end of the tax year in which the income arose. For example, for income earned in the 2026/27 tax year (ending 5 April 2027), the registration deadline is 5 October 2027. Registering late can result in penalties. See gov.uk Self Assessment registration.
When do I need to think about VAT on my side hustle?
VAT registration is required once your gross taxable turnover exceeds the £90,000 VAT threshold in a rolling 12-month period. The threshold is based on gross sales, not profit or net payout. If you are approaching that level, use the VAT threshold tracker to monitor your position. This income tax checker does not cover VAT.