Trading Allowance Calculator 2025-26

Calculate tax on your side hustle, selling online, or freelance income. The first £1,000 is tax-free.

📖 What is the Trading Allowance?

The Trading Allowance is a £1,000 tax-free allowance for self-employed income, side hustles, freelance work, or selling goods. If your gross trading income is under £1,000, you do not need to declare it at all. Above £1,000, you can deduct the allowance instead of actual expenses.

Applies to: eBay/Vinted selling, freelancing, tutoring, Airbnb (up to £7,500 separately via Rent-a-Room), dog walking, odd jobs · Cannot be combined with actual expenses claim

Trading Allowance: The first £1,000 of self-employment or trading income is completely tax-free. You don't even need to tell HMRC. Source: gov.uk

Side Income / Trading Income

Actual Expenses (leave 0 to use trading allowance)

Main Employment Income (salary)

Tax to Pay

£1,040

You Keep

£3,960

Deduction used: £1,000 trading allowance

Taxable profit: £4,000

Income tax on side income: £800

Sources & References

Trading allowance is £1,000/year. You cannot use both the trading allowance AND actual expenses.

gov.uk: Trading Allowance HMRC: Self Assessment