// Source citations for the factual claims in this guide (kept out of the // rendered tree: flow-level MDX comments break Next scroll-on-navigation). export const sources = [ "source: https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income, retrieved 2026-06-12 (trading allowance £1,000, gross income basis, Self Assessment registration over £1,000 by 5 October following the tax year, allowance-instead-of-expenses election, exclusions for partnerships, own company, employer)", "source: https://www.gov.uk/guidance/selling-goods-or-services-on-a-digital-platform, retrieved 2026-06-12 (platform reporting from 1 January 2024, exclusion below 30 sales and 2,000 euros (about £1,700), annual reports by 31 January, seller copy, reporting does not itself mean tax is owed)", "personal allowance £12,570: site/lib/tax/config.ts, 2026/27 figures verified in-repo against gov.uk", ];

Guide · 5 minute read

How much can you earn from a side hustle before paying tax?

You can earn up to £1,000 of gross side hustle income per tax year, tax free and with no paperwork, under the trading allowance. Earn more than £1,000 across all your hustles combined and you normally have to register for Self Assessment.

£1,000 of turnover, not £1,000 of profit

The trading allowance is measured against gross income: everything you were paid before any costs come off. HMRC defines it as the total you would put on a tax return before allowances or expenses. So if you sell £1,200 of handmade prints on Etsy and spent £400 on materials, your profit is £800 but your gross income is £1,200, and you are over the allowance. This catches a lot of people who assume "I barely made anything after costs" means they can ignore it.

The tax year runs 6 April to 5 April, so the £1,000 resets each April, not each January.

All your hustles share one allowance

It is one allowance per person per tax year, covering all your trading income added together: eBay flipping plus dog walking plus a bit of freelance design is one pot, not three. It is not per platform and not per activity.

It also is not universal. You cannot use the trading allowance against income from a partnership you are in, from a company you (or someone connected to you) own or control, or from your employer or your spouse's employer. Invoicing your own day-job employer for weekend work does not get the £1,000 free.

Selling your own old stuff is usually not trading

Clearing out your wardrobe on Vinted is generally not trading at all. You are selling personal possessions, almost always for less than you paid, and that is not taxable income, so the £1,000 limit is not even in play. Trading means buying or making things in order to sell them, or providing services for payment. The line is intent: thirty listings of your own old jumpers is a clear-out; buying job lots at car boot sales to resell is a business.

Vinted, eBay and Etsy now report sellers to HMRC

Since 1 January 2024, digital platforms (apps and websites that let you sell goods or services) must collect and report seller information to HMRC. You stay under the radar only if you make fewer than 30 sales of goods in a calendar year and receive less than 2,000 euros (about £1,700) for them; cross either line and the platform reports you. Platforms send the data to HMRC by 31 January for the previous calendar year and must give you a copy showing your total earnings less fees.

Two things matter here. First, being reported does not mean you owe tax; HMRC says so explicitly, and the rules changed what HMRC can see, not what is taxable. Second, the reporting thresholds and the £1,000 trading allowance are different numbers measuring different periods (calendar year versus tax year), so do your own sums rather than waiting for a platform email.

When Self Assessment registration becomes mandatory

If your gross trading income goes over £1,000 in a tax year, you must register for Self Assessment by 5 October in the following tax year. Go over the line in 2026/27 (by 5 April 2027) and the registration deadline is 5 October 2027.

Registering does not necessarily mean paying. If the hustle is your only income, the personal allowance (£12,570 in 2026/27) usually covers the profit and the bill is zero; you file, you owe nothing. If you also have a salaried job, the job typically uses up your personal allowance, so side hustle profits are taxed at your marginal rate. Our self-employed tax calculator shows the actual bill on your numbers, including National Insurance where it applies.

Allowance versus actual expenses: pick one

Once you are over £1,000 and filing, you get a choice each year. You can deduct the flat £1,000 trading allowance from your gross income instead of expenses, or you can deduct your actual business expenses, but never both.

The rule of thumb: if your real costs are under £1,000, claim the allowance (bigger deduction, no receipts to total up). If your costs are higher, claim actual expenses. A reseller paying for stock, postage and packaging will usually beat £1,000 in costs; a dog walker mostly selling their time usually will not. You can switch approach from one year to the next as your costs change. One trade-off to know: claiming the allowance means you cannot deduct any other expenses for that income, so in a genuinely loss-making year the allowance route is rarely the right call.

The honest summary: under £1,000 gross across everything, relax. Over it, register on time, keep simple records of income and costs, and let the numbers decide between the allowance and real expenses.

Common questions

Do I have to pay tax on Vinted sales?

Usually not. Selling your own clothes and possessions, normally for less than you paid, is not trading and not taxable. Tax only enters the picture if you buy or make things to sell, and even then the first £1,000 of gross income per tax year is covered by the trading allowance.

Will HMRC know about my eBay or Etsy income?

Quite possibly. Since January 2024 platforms must report sellers to HMRC unless they made fewer than 30 sales of goods and under 2,000 euros (about £1,700) in the calendar year. Reports go in by 31 January each year and you receive a copy. Being reported does not by itself mean you owe tax.

When do I need to register for Self Assessment for a side hustle?

When your gross trading income (total takings before expenses) goes over £1,000 in a tax year. You must register by 5 October in the following tax year, so over the line in 2026/27 means registering by 5 October 2027.

Is the £1,000 trading allowance per platform or in total?

In total. It is one allowance per person per tax year across all trading income combined: every platform and every side activity added together. It also cannot be used against income from a partnership, your own company, or your employer.

Do I pay tax on a side hustle if I already have a full-time job?

The £1,000 trading allowance still applies on top of your job. Over £1,000 gross you register for Self Assessment, and because your job normally uses your personal allowance, side hustle profits are taxed at your marginal rate. A 20% taxpayer keeps roughly 80p of each extra pound of profit before any National Insurance.

Guidance and education, not regulated financial advice.