How much tax on £1,000 of side income?
Worked examples for 2026/27 and 2027/28, whether you have no job, a basic rate salary or a higher rate salary.
Tax on £1,000 side income in 2026/27
These figures assume the £1,000 trading allowance is taken off, which is the best option unless your costs are higher. They are for England, Wales and Northern Ireland.
| Your situation | Income tax | Class 4 NI | Total | You keep |
|---|---|---|---|---|
| No other income | £0 | £0 | £0 | £1,000 |
| Salary of £25,000 | £0 | £0 | £0 | £1,000 |
| Salary of £45,000 | £0 | £0 | £0 | £1,000 |
| Salary of £60,000 | £0 | £0 | £0 | £1,000 |
What changes in 2027/28
The October 2026 Budget triples the trading allowance to £3,000 from 6 April 2027. Here is the same £1,000 in 2027/28:
| Your situation | Income tax | Class 4 NI | Total | You keep |
|---|---|---|---|---|
| No other income | £0 | £0 | £0 | £1,000 |
| Salary of £25,000 | £0 | £0 | £0 | £1,000 |
| Salary of £45,000 | £0 | £0 | £0 | £1,000 |
| Salary of £60,000 | £0 | £0 | £0 | £1,000 |
What else to know
- £1,000 is within the £1,000 trading allowance, so in 2026/27 there is no tax to pay and nothing to report, as long as it is your only self-employed income.
Common questions
Do I pay tax on £1,000 of side income?
Not in 2026/27. Side income of £1,000 or less is covered by the trading allowance, so there is nothing to pay or report.
How much should I set aside from £1,000 of side income?
As a basic rate taxpayer, £0, or about £0 a month. As a higher rate taxpayer on £60,000, £0.
Do I need to tell HMRC about £1,000 of side income?
No, as long as it is covered by the trading allowance and you have no other self-employed income.
Assumes the standard Personal Allowance, salary taxed through PAYE and no other income. Scotland has different income tax bands. 2027/28 figures follow the October 2026 Budget and still need to be passed into law. Sources: GOV.UK income tax rates, trading allowance.