Side hustle tax calculator
Got a job and a bit of income on the side? See how much tax you'll pay on your side hustle, what you actually keep, and whether you need to tell HMRC.
Work out the tax on your side income
The short answer
- The first £1,000 of side income a year is tax-free.
- Above that, your side profit is taxed on top of your salary, so at 20% if you're a basic rate taxpayer, or 40% if your salary is over about £50,000.
- You may also pay Class 4 National Insurance if your side profit is over £12,570.
An estimate for England, Wales and Northern Ireland using 2026/27 rates, assuming your salary is taxed correctly through PAYE. Doesn't include student loans, pensions or Scottish rates. Not tax advice.
How side income is taxed
Your salary uses up your £12,570 personal allowance first. So any side profit is taxed at your marginal rate, the rate on the next pound you earn. For most people with a full-time job that's 20%. If your salary plus side profit goes over £50,270, the part above is taxed at 40%.
You can either deduct your actual costs, or use the £1,000 trading allowance instead. The calculator picks whichever leaves you paying less.
Frequently asked questions
Do I pay tax on side income under £1,000?
No. If your total side income before costs is £1,000 or less in the tax year, it's covered by the trading allowance and you don't need to tell HMRC. Check your side income.
Do I pay National Insurance on a side hustle?
Only Class 4, and only if your side profit on its own is over £12,570. Your salary doesn't count towards that.
How do I pay the tax?
Register for Self Assessment by 5 October after the tax year, then file and pay by 31 January. If you owe less than £3,000 and file online by 30 December, HMRC can usually collect it through your tax code instead.
Does HMRC know about my side hustle?
Platforms like eBay, Etsy, Vinted and Airbnb now share some sellers' details and earnings with HMRC, so it's best to declare income you need to.
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