Side hustle tax calculator
Gross, before tax, for the whole tax year. Put 0 if you have no job.
Everything you take in for the year, before costs.
Stock, fees, equipment, mileage. We compare these with the £1,000 trading allowance and use whichever saves you more.
2026/27 rates for England, Wales and Northern Ireland. Scotland has different income tax bands. Does not include student loan repayments or pension contributions.
Your side hustle, 2026/27
- Less the trading allowance
- −£1,000
- Taxable profit
- £5,000
- Income tax on it
- £1,000
- Class 4 National Insurance
- £0
- Total to set aside
- £1,000
Put aside each month
£83
Of your side income
16.7%
You keep after tax and costs
£4,500
- If you are not already registered, sign up for Self Assessment by 5 October after the tax year ends. The bill is due by 31 January.
- Profit under £7,105 does not build State Pension years. You can pay voluntary Class 2 at £3.65 a week if you need them.
The trading allowance rises to £3,000 in April 2027
The October 2026 Budget triples the trading allowance from £1,000 to £3,000 from 6 April 2027. The point at which you need to tell HMRC about side income rises to £3,000 at the same time. Switch the calculator to 2027/28 to see the difference for you.
How the calculator works
It takes your side income and knocks off either the £1,000 trading allowance or your real expenses, whichever is bigger. What is left is your taxable profit.
It then works out your income tax twice, once on your salary alone and once on your salary plus the profit. The difference is the tax your side hustle adds. Class 4 National Insurance is added on top, based on the profit alone.
Worked example
You earn £30,000 from your job and make £6,000 selling on Vinted and eBay, with £500 of costs. The £1,000 allowance beats your £500 of costs, so your profit is £5,000. Your salary has already used your personal allowance, so all £5,000 is taxed at 20%: £1,000 of income tax. The profit is below the National Insurance threshold, so the total is £1,000, or about £83 a month to put aside.
What to do next
- Open a separate account for side hustle money and move your monthly set-aside into it.
- Keep receipts for everything you spend, even if you end up using the allowance.
- If your side income and any rent together are heading over £20,000, check when Making Tax Digital starts for you.
Questions
Common questions
Do I pay tax on a side hustle in the UK?
Only once your side income goes over £1,000 in the 2026/27 tax year, rising to £3,000 from 6 April 2027. Under that, the trading allowance covers it and you do not need to tell HMRC. Over it, you register for Self Assessment and pay tax on your profit.
Can I claim the trading allowance and my expenses?
No. You choose one: the £1,000 allowance or your actual business expenses. Use the allowance if your costs are under £1,000, and your expenses if they are higher. The calculator picks the better option for you.
Why is the tax on my side hustle higher than I expected?
Your job usually uses up your personal allowance, so side profit is taxed from the first pound. If your salary is near £50,270, some or all of the profit is taxed at 40%.
Do I pay National Insurance on a side hustle?
You pay Class 4 National Insurance at 6% on profit between £12,570 and £50,270, and 2% above that. It is worked out on your side profit alone, not added to your salary.
Sources
This tool gives an estimate for general information. It is not tax advice. Check your own position on GOV.UK or with an accountant.