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Enter your side income details to calculate your tax bill.
Calculate exactly how much tax you owe on your side income. Covers Vinted, Etsy, eBay, freelancing, delivery driving, tutoring and more.
Enter your side income details to calculate your tax bill.
If your total side hustle income is under £1,000 per tax year you pay no tax and do not need to tell HMRC. Above £1,000, you must register for Self Assessment and declare the profit (income minus expenses). You pay income tax on the profit at your marginal rate.
Selling personal items you no longer need is not taxable. But if you regularly buy goods to resell for profit, that is trading income. From January 2024, HMRC receives sales data from platforms including Vinted, eBay, Etsy and Airbnb for sellers earning above a threshold.
The trading allowance lets you earn up to £1,000 gross from self-employment without any tax or reporting. Above £1,000, you can either use the flat £1,000 allowance or deduct your actual expenses, whichever gives a lower taxable profit. You cannot use both.
If your side hustle profit is above £12,570 (the NI threshold for self-employment) you pay Class 4 NI at 6% on profits up to £50,270 and 2% above. If your profit is below £6,725, you may pay voluntary Class 2 NI at £3.45/week to protect your state pension record.
For informational purposes only · Not financial advice · Contact HMRC or a tax adviser for your specific situation