Trading Allowance Calculator (UK)
The £1,000 trading allowance lets you earn casual or self-employed income tax-free. Above £1,000, choose between the allowance or actual expenses — whichever leaves a smaller taxable profit.
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If your gross trading income is £1,000 or less, it's completely tax-free and you don't need to register for self-assessment. Above that, you have a choice: deduct your actual allowable expenses, OR deduct £1,000 (partial relief) — but not both.
The same £1,000 limit applies separately to rental income (the property allowance), so casual landlords with under £1k/year in rent don't need to declare it either. Both allowances are use-it-or-lose-it per tax year.
Your side-hustle income
Salary, pension etc. — used to find your marginal rate.
What this means for your side-hustle
The rule of thumb: if your real expenses are less than £1,000, claim the allowance — it's the bigger deduction. If your expenses are over £1,000 (think stock, equipment, mileage), claim them instead. The calculator picks the winning option for you.
Once your gross side-hustle income crosses £1,000, you must register for self-assessment by 5 October after the tax year ends. Late registration brings automatic penalties even if no tax is due.
Frequently Asked Questions
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