Answers · UK 2025/26
What is the UK trading allowance?
The trading allowance lets you earn up to £1,000/year tax-free from self-employment, side hustles, or selling online (Vinted, eBay, Etsy). No need to register for Self Assessment if income stays under £1,000. Above £1,000: declare on Self Assessment.
Full answer
The trading allowance (introduced 2017) gives £1,000/year tax-free for «trading income» — self-employment, hobby trade, occasional gig work, online selling, content creation. Includes income from Vinted, eBay, Etsy, Depop, Airbnb (if rental, see Rent-a-Room scheme separately), YouTube, freelance side projects. Earn ≤ £1,000: no Self Assessment registration needed; no tax. Earn > £1,000: choose to either (a) deduct £1,000 allowance + pay tax on excess only, OR (b) deduct full actual expenses — whichever gives lower tax. From January 2024, online platforms report seller earnings to HMRC for users selling 30+ items or £1,700+/year.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.