01 / CHECK YOUR SIDE HUSTLE
Allowance or actual expenses?
Enter your gross income and allowable expenses for one tax year.
Your figures
UK TAX RULESIncome before deducting expenses
£
Actual costs for this trade
£
The trading allowance rules are the same for both years
LOWER TAXABLE PROFIT
Use the £1,000 allowance
£650.00 lower taxable profit with the better option.
Compare the options2025/26
Option A · £1,000 trading allowanceIncome less the allowance
£800.00Option B · actual expensesIncome less allowable expenses
£1,450.00The £1,000 allowance gives the lower taxable profit. You generally need to register for Self Assessment by 5 October 2026 and file online by 31 January 2027.
SELF ASSESSMENT DEADLINES · 2025/26
With gross trading income over £1,000, you generally need to register for Self Assessment by 5 October 2026 and file online by 31 January 2027.
02 / COMMON QUESTIONS
A few useful details.
What is the trading allowance?
It is a £1,000 annual allowance for eligible miscellaneous or trading income. If your gross trading income is £1,000 or less, it can provide full relief for that income. Above £1,000, you can generally compare it with actual allowable expenses and use one method for that trade.
Does it apply to Etsy, eBay or Vinted selling?
It can apply if you are trading—for example, buying or making goods to sell for profit. Selling your own unwanted personal possessions can be treated differently. The platform used does not by itself decide whether income is trading income.
Can I use the allowance and claim expenses?
Not for the same trade in the same tax year. Compare the £1,000 allowance with your actual allowable expenses, then use one method. The allowance cannot create a trading loss.
What about the proposed £3,000 threshold?
The government has announced a plan for a £3,000 reporting threshold for trading and property income, but it is not in force and has no confirmed start date. The £1,000 trading allowance is unchanged.
03 / KEEP GOOD RECORDS
Tools for your side hustle.
Use a spreadsheet to keep sales and expenses together through the year.
FREE PDF CHECKLIST
The deadlines, without the dread.
Get the free 2025/26 Self Assessment deadline checklist (PDF) by email. A simple reminder of what to do and when.
This checker provides a general estimate, not tax advice. Tax rules and reporting requirements depend on your circumstances; check current HMRC guidance or speak to a qualified adviser.