This free UK side hustle tax calculator estimates the extra tax and National Insurance on income from selling, freelancing or gig work. Selling on Etsy or eBay, freelancing or reselling alongside a job? Enter your salary and side-hustle income and costs. The calculator applies the £1,000 trading allowance or your actual expenses (whichever saves more), then works out the extra income tax and Class 4 National Insurance for the 2026/27 tax year, and how much to put aside each month.
How to use the UK Side Hustle Tax Calculator
- Enter your employment income, such as salary.
- Enter your side hustle income from sales.
- Enter your allowable expenses for the year.
- Press Calculate my tax to see extra income tax, Class 4 NI and what to put aside each month.
Use the UK side hustle tax calculator figure as a savings target, and confirm the final bill through Self Assessment. See the GOV.UK guidance on the trading allowance for the full rules.
2026/27 rates used (England, Wales and Northern Ireland)
| Band | Income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
| Class 4 NI | Profits £12,570 – £50,270 | 6% |
| Class 4 NI | Profits over £50,270 | 2% |
The personal allowance is reduced by £1 for every £2 of income above £100,000. Class 2 NI is no longer compulsory. Self-employed people with profits below the small profits threshold can pay it voluntarily to protect State Pension entitlement. Scotland has different income tax bands, so Scottish taxpayers should use HMRC’s Scottish rates.
The £1,000 trading allowance
If your total trading income before expenses is £1,000 or less in a tax year, you don’t need to tell HMRC. Above £1,000 you can either deduct the flat £1,000 allowance or your actual allowable expenses, whichever is higher. The calculator picks the better option automatically.
Selling your own used items
Occasionally selling your own unwanted belongings (clothes on Vinted, old furniture) is not trading and is usually not taxable. Buying items to resell, or making things to sell, is trading. Platforms now report seller data to HMRC when you pass 30 sales or about £1,700 a year, but that reporting threshold does not change whether tax is due.
Frequently asked questions
Do I pay tax on my Etsy income in the UK?
Yes, if your trading income (sales, not profit) is over £1,000 a year. You then pay income tax on your profit at your marginal rate, plus Class 4 NI if your self-employed profit is over £12,570.
Can I use the trading allowance and claim expenses?
No. You choose one: the £1,000 trading allowance or your actual allowable expenses. Use actual expenses if they add up to more than £1,000.
Do I pay National Insurance on a side hustle if I already pay it through PAYE?
Class 4 NI is based on self-employed profit alone. If your side-hustle profit is below £12,570, no Class 4 is due, even if you also have a job.
When do I pay the tax?
Tax for the 2026/27 tax year is paid by 31 January 2028 through Self Assessment, together with any payment on account for the next year.
Does HMRC get sales data from Etsy, eBay and Vinted?
Yes. Since January 2024, digital platforms collect seller details and report them to HMRC each year. Platforms report sellers with 30 or more sales or about £1,700 (€2,000) or more in a year. Being reported doesn’t change whether you owe tax; that depends on whether you are trading.
What counts as allowable expenses?
Costs incurred wholly for the business: materials, packaging, postage, platform and payment fees, and a fair share of phone, internet and home costs. If your expenses are above £1,000, claiming them usually beats the trading allowance.
Related tools
Estimates for England, Wales and Northern Ireland, using 2026/27 rates. It does not include student loan repayments, the High Income Child Benefit Charge, Scottish rates or capital allowances in detail. This is not tax advice; check with HMRC or an accountant.