About
Home › Tools › Trading Allowance Calculator

Tax year 2026/27

The Trading Allowance Calculator

Find out if your UK side hustle income is above the £1,000 tax-free trading allowance, whether you need to register for Self Assessment, and whether claiming the allowance or your actual expenses leaves you better off.

By  ·  Verified against gov.uk and HMRC for the current tax year

Your numbers

Total money taken in before any expenses are deducted. Etsy sales totals, Uber earnings, freelance invoices paid.

Costs you would otherwise claim against this income. Leave at zero if you have none.

Enter your gross income above to see if you are over the £1,000 threshold and which method saves you the most tax.

What is the trading allowance?

The trading allowance is a tax exemption set by HMRC. For the 2026/27 tax year it is £1,000 of gross trading income per person, per tax year. It applies to most small-scale self-employment and casual income: online selling, freelance work, content creation, ride-share driving, food delivery, hobbies that earn money, and most other side hustle activities.

If your gross trading income is at or below £1,000, you do not need to register for Self Assessment in respect of that income, and you do not owe Income Tax or Class 4 National Insurance on it. Above £1,000, you must register and choose between claiming the £1,000 allowance OR your actual expenses, never both.

What next

Calculator

Side Hustle Tax Calculator

Now you know whether you are above the allowance, find out exactly how much Income Tax and Class 4 NI you will owe. Handles dividends, Scottish bands, and PAYE.

Open calculator › Read next

The £1,000 Trading Allowance, explained

Plain English guide to the trading allowance for 2026/27, who qualifies, common mistakes HMRC flags, and the rules around connected parties.

Read article › Template

SA Registration Checklist

If your income is over £1,000, this 12-step checklist walks you through registering with HMRC for Self Assessment. Free, printable, all gov.uk links inline.

Open checklist › Quiz

Which side hustle suits you?

7 questions, top 3 ranked side hustles tailored to your time, budget, and risk tolerance. No signup, no email.

Take the quiz ›

Key terms

Trading Allowance
· £1,000 tax-free amount for small-scale self-employment income
Self Assessment
· the annual UK tax return you file if you have income outside PAYE
Connected party
· your own limited company, your employer, or a partnership you are a partner in
Full relief
· the rule that means income at or below £1,000 is treated as nil for tax

This calculator is a guide based on published HMRC and gov.uk rules for the 2026/27 UK tax year. It does not constitute personal tax advice. Your individual circumstances may include factors this calculator does not handle, such as multiple trades, partnership income, capital allowances, or pre-trading expenses. For your specific situation, consult HMRC directly or speak to a qualified accountant. Sources: gov.uk/tax-free-allowances, HMRC BIM86000, gov.uk Self Assessment.