Glossary · UK
What is Trading Allowance (£1,000)?
Tax-free £1,000 a year of gross self-employed or casual «side hustle» income.
Full Definition
The Trading Allowance gives every UK individual £1,000 of gross income each tax year from self-employment, casual services or hobby trading (eBay, Etsy, Vinted, freelance gigs) that does not need to be reported to HMRC. If gross trading income is between £1,000 and £1,000 + your allowable expenses, you can choose to deduct the £1,000 allowance instead of actual expenses — useful for low-cost activities. Above £1,000 you must register for Self Assessment and either claim the allowance or full expenses, not both. Separate from the £1,000 Property Allowance. From January 2024 digital platforms (Vinted, Airbnb, eBay) report seller earnings to HMRC, making it easier to spot under-reporting.