Side Hustle Tax Calculator
Millions of UK workers have a side hustle — but many don't realise they owe tax on it. The £1,000 trading allowance helps, but earn more and you'll need to register with HMRC.
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Whether you're freelancing, selling on Etsy, tutoring, or doing food deliveries, the tax rules are the same. Side hustle income is self-employment income, and it's taxed at your marginal rate on top of any employed salary. The key question is whether the £1,000 trading allowance covers you, or whether you're better off claiming actual expenses.
Enter your side hustle income and main job salary below to see exactly how much tax you'll owe, what you'll keep, and whether you need to file a Self Assessment return.
Side Hustle Tax Calculator
Calculate the tax on your side income, check if the £1,000 trading allowance covers you, and see when you need to register with HMRC.
You must register for Self Assessment
Side income over £1,000 means you need to register with HMRC and file a tax return.
Tax Breakdown
Side Hustle Income
£5,000
Taxable Profit
£4,000
Trading allowance (£1,000)
You Keep
£4,200
After tax and expenses
Effective Tax Rate
16.0%
Of total side income
The £1,000 trading allowance lets you earn up to £1,000/year from self-employment or casual trading without telling HMRC. You can choose either the trading allowance OR actual expenses — whichever gives you a lower tax bill.
Understanding Side Hustle Tax
When Does a Side Hustle Become Taxable?
The moment your self-employment or trading income exceeds £1,000 in a tax year, you enter the tax system. You must register for Self Assessment by 5 October following the tax year in which you started, and file your return by 31 January. Miss these deadlines and you'll face automatic penalties.
Trading Allowance vs Actual Expenses
If your expenses are below £1,000, the trading allowance is the simpler option — you just deduct £1,000 from your income with no receipts needed. If your expenses exceed £1,000, claiming actual expenses will reduce your tax bill further, but you'll need to keep records and receipts.
Common Side Hustles and Tax Implications
- Freelancing (design, writing, consulting): Fully taxable trading income
- Tutoring or coaching: Trading income — claim workspace, materials
- Rental income: Separate rules — uses the £1,000 property allowance, not trading allowance
- Selling crafts on Etsy: Trading income once you're buying to sell or making to sell
- Food delivery (Deliveroo, Uber Eats): Self-employed income — claim vehicle costs
Frequently Asked Questions
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