Tax on a side hustle

Tax on self-employed income alongside a job, with the £1,000 trading allowance.

Your details

Your result

You keep from your side income£3,100
  • You keep78%£3,100
  • Income tax15%£600
  • Class 4 NI0%£0
  • Student loan0%£0
  • Expenses8%£300
Taxable profit£3,000
Total tax and loan£600
Assumptions and limits

Under £1,000 of side income needs no reporting. We use whichever is larger: the £1,000 allowance or your real expenses. Above £1,000 you file Self Assessment, and if the tax due is over £1,000 you may also pay half of next year’s bill in advance (payments on account). Online platforms now report seller income to HMRC.

Sources: Income Tax rates · Trading allowance · Student loan repaymentsTax year 2026/27

Common questions

Do I need to tell HMRC about my side income?

If you earn more than £1,000 from self-employment in a tax year, you need to register for Self Assessment and file a tax return.

What is the trading allowance?

The first £1,000 of trading income is tax-free. You can deduct either the £1,000 allowance or your real expenses, not both.

Will HMRC know about my online sales?

Platforms such as eBay, Vinted and Etsy now report sellers with 30 or more sales, or about £1,700 or more in a year, to HMRC.

How we calculate

Every calculator uses the published 2026/27 rates from one shared set of rules, so when a rate changes, it changes everywhere.

Where rates come from

Tax, National Insurance, student loan, benefit and property tax rates come from GOV.UK. Each calculator links to its sources.

What we don’t cover

Scottish income tax bands, tax codes other than 1257L, benefits in kind and your personal circumstances. Results are estimates to help you plan, not a payslip or advice.