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Start filing →Earned money outside your main job this year? Whether you're selling crafts online, freelancing, tutoring, or doing delivery work — the rules around side hustle tax in the UK are simpler than most people think. The key number is £1,000.
This is your GROSS income — not profit — measured across all side income combined.
What Is the Trading Allowance?
HMRC gives every UK taxpayer a £1,000 trading allowance each tax year. This covers any self-employed, casual, or miscellaneous income you earn outside of PAYE employment.
If your total side income stays below £1,000 gross in a tax year, you do not need to register for Self Assessment, and you do not need to file a tax return.
If your income goes over £1,000, you must register with HMRC and complete a Self Assessment tax return for that year.
What Counts as Side Hustle Income?
The trading allowance covers a wide range of side income, including:
- Selling goods online (Etsy, eBay, Vinted, Depop, Amazon)
- Freelance or consultancy work
- Tutoring or teaching
- Food delivery and courier work (Deliveroo, Uber Eats, Amazon Flex)
- Renting out equipment or tools
- Dog walking or pet sitting
- Creating content or digital products
It does not cover rental income from property — that has its own separate £1,000 property allowance.
What Do I Do If I Need to Declare It?
If your side income is over £1,000, here is what to do:
Register for Self Assessment
Register with HMRC by 5 October following the end of the tax year. You can do this on the HMRC website. You'll receive a Unique Taxpayer Reference (UTR) number by post within 10 days.
Gather your income records
Total up all payments received during the tax year (6 April to 5 April). Keep records of any expenses you can deduct — materials, postage, platform fees, equipment.
File your tax return
Complete and submit your Self Assessment return by 31 January. Any tax owed is also due by this date. SubmitFox submits directly to HMRC in minutes.
What Can I Deduct?
If you register for Self Assessment, you can deduct allowable expenses from your income before tax is calculated. Common deductions for side hustlers include:
- Materials and stock
- Platform fees (Etsy listing fees, PayPal fees, etc.)
- Postage and packaging
- Equipment used for the work
- A proportion of your phone bill
- Home workspace costs (if you work from home)
This can significantly reduce — or sometimes eliminate — the tax you actually owe.
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Common Questions
No. The £1,000 trading allowance means you do not need to register or file a tax return if your total side income is under £1,000 gross in a tax year. £500 is well under that threshold.
The £1,000 trading allowance covers all your self-employed and miscellaneous income combined — not per activity. So if you earn £400 from tutoring and £700 from selling crafts, your total is £1,100 and you must register for Self Assessment.
Increasingly, yes. HMRC receives data from platforms like Etsy, eBay, Vinted, Uber, and Deliveroo. From January 2024, platforms are legally required to report seller income above certain thresholds. Filing proactively is always safer than waiting to be contacted.
You must register by 5 October following the end of the tax year in which you earned the income. For income earned in the 2024/25 tax year (ending 5 April 2025), the deadline to register is 5 October 2025.
Yes. If you register for Self Assessment, you can deduct allowable expenses — such as materials, equipment, postage, and a proportion of phone costs — from your income before calculating tax. This often reduces the amount you owe significantly.