You can earn up to £1,000 a year from a side hustle without telling HMRC, thanks to the trading allowance. That limit applies to your total income from self-employment before expenses, not your profit, and it covers all your side hustles combined. Go over it and you need to register for Self Assessment, but you can still deduct £1,000 or your actual expenses, whichever is higher.
Different hustles fall under different rules: selling your own unwanted things is usually not taxable at all, renting out a room has its own £7,500 allowance, and renting a driveway uses the separate £1,000 property allowance. The 15 ideas below are grouped by which rule applies.
The tax rules in one table
These are the 2026/27 limits that decide whether you need to tell HMRC.
| Type of income | Tax-free limit | Above the limit |
|---|---|---|
| Self-employed side work (trading) | £1,000 a year, gross | Register for Self Assessment |
| Renting out a parking space, storage or a property | £1,000 a year (property allowance) | Register for Self Assessment |
| Renting a furnished room in your home | £7,500 a year (Rent a Room) | Register and claim relief |
| Selling your own used belongings | Usually not taxable | Tax may apply if you buy to resell |
Online platforms now report sellers to HMRC once they make 30 or more sales or earn more than about £1,700 (€2,000) in a calendar year. A report does not automatically mean you owe tax; it just means HMRC can see the activity.
Ideas 1 to 5: local services
These count as trading, so the £1,000 allowance applies across all of them combined.
- Dog walking and pet sitting: check your council for any licensing needed for boarding, and get public liability insurance
- Cleaning or ironing: low start-up costs; regular clients give steady income
- Gardening and odd jobs: mowing, hedge trimming and flat-pack assembly are in demand
- Tutoring: online or in person; families usually expect an enhanced DBS check if you tutor children
- Babysitting: flexible evening work, often found through word of mouth
Ideas 6 to 10: skills and online work
Also trading income, often scalable if it goes well.
- Freelance writing, design or editing through your own contacts or freelance marketplaces
- Virtual assistant work: admin, inbox and calendar management for small businesses
- Selling crafts or prints online or at local markets
- Photography for local events, families or small businesses
- Delivery or driving work: check that your car or bike insurance covers business use
Ideas 11 to 13: renting out what you have
These use property rules rather than trading rules.
- Renting a driveway or garage to commuters or event-goers, covered by the £1,000 property allowance. Check your lease or mortgage terms first
- Renting storage space in a garage or shed, also under the property allowance
- Taking in a lodger: the Rent a Room scheme lets you earn up to £7,500 a year tax-free from a furnished room in your main home. Our Rent a Room guide explains the rules
Ideas 14 and 15: selling and decluttering
Selling your own unwanted items for less than you paid is not normally taxable, even if you sell a lot. Buying items to sell on at a profit is trading, and the £1,000 allowance applies.
- Decluttering your home: clothes, electronics, furniture and toys. Our declutter and sell challenge gives a 30-day plan
- Reselling: buying at car boot sales or charity shops and selling online. This counts as trading income from the first sale
If you earn more than £1,000
Register for Self Assessment by 5 October after the end of the tax year in which you went over the limit. You then file a return by 31 January and pay any tax due. You can deduct either £1,000 or your actual allowable expenses, whichever saves more. Profits are added to your other income and taxed at your normal rate, and Class 4 National Insurance of 6% applies to profits above £12,570. Making Tax Digital for Income Tax applies only if your self-employment and property income together exceed £50,000 in 2026/27 (falling to £30,000 from April 2027).
For a full walkthrough, read our side hustle tax rules and self-employed tax guide for beginners. Use the take-home pay calculator to see what tax rate your extra income would fall into.
Make the extra money count
Side hustle money easily disappears into everyday spending. Give it a job before it arrives: an emergency fund, a debt or a goal. Keep 20% to 30% aside for tax if you expect to go over the allowance. Our savings goal calculator shows how quickly a few hundred extra pounds a month reaches a target, and SYM helps you move a little every day so it actually builds. Avoid schemes that ask you to pay upfront for training or stock, and be cautious with anything sold as easy money, such as matched betting.
Frequently asked questions
How much can I earn from a side hustle before paying tax in the UK?
Is the £1,000 trading allowance per side hustle?
Do I pay tax on selling my old things on eBay or Vinted?
When do I need to register for Self Assessment for a side hustle?
Will a side hustle affect my Universal Credit?
- side hustles
- trading allowance
- extra income
- Self Assessment
- HMRC