Glossary · UK
What is Side Hustle Tax Threshold?
The £1,000-a-year Trading Allowance, below which gig-economy and side-hustle income (reselling, freelancing, content creation, casual services) does not need to be declared to HMRC.
Full Definition
The side hustle tax threshold refers to the £1,000 Trading Allowance: the amount of gross income an individual can earn each tax year from self-employment-style activity — reselling on Vinted or eBay, freelance work, dog walking, tutoring, content creation — without needing to tell HMRC or file a Self Assessment return. Once gross income from these activities exceeds £1,000 in a tax year, the whole amount must be reported, though the trader can then still deduct the £1,000 allowance (instead of itemising actual expenses) when calculating taxable profit. Since January 2024, digital platforms such as eBay, Vinted, Etsy, Airbnb and Deliveroo are legally required to report UK sellers' and workers' annual earnings to HMRC, which has sharply increased scrutiny of side-hustle income that goes undeclared. The threshold is a single combined allowance across all self-employed/casual trading activity, not £1,000 per platform or per side hustle.
How Side Hustle Tax Threshold is calculated
Tax-free if gross side-hustle income <= 1000; Self Assessment required if income > 1000- 1000
- Annual Trading Allowance (GBP), 2026/27.
Worked example: Someone earning GBP 1,400 reselling clothes online in a tax year must register for Self Assessment and can deduct the GBP 1,000 allowance, paying tax on the remaining GBP 400 of profit (or on actual profit if that is lower after real expenses).