Calculate your tax obligations for additional income streams. Get instant estimates of Income Tax and National Insurance contributions for your side hustle earnings. All calculations are performed securely in your browser - no sensitive financial information is ever sent to external servers.
Understanding your tax obligations in advance allows you to make informed decisions about setting aside funds. This foresight enables strategic financial planning, whether you choose to safely invest the allocated tax money until payment is due or simply ensure you have the right amount saved.
This represents the additional tax and National Insurance you may need to pay on your side hustle income.
Previous Calculations
Main Income:
£
Side Hustle Income:
£
Side Hustle Expenses:
£
Side Hustle Profit:
£
Estimated Additional Income Tax:
~£
Estimated National Insurance Contributions:
~£
Estimated Total Additional Tax (Income Tax + NI):
~£
Estimated Effective Tax Rate (Income Tax + NI):
%
Understanding Side Hustle Taxes in the UK
When you earn money from a side hustle alongside your main employment, you need to understand how this affects your tax position:
Key Points About Side Hustle Taxation
The first £1,000 of side income may be tax-free under the Trading Allowance
Income above this threshold needs to be declared to HMRC
You'll need to register for Self Assessment if earning over £1,000
Your side hustle income is added to your main income to determine your tax band
Tax Bands and Rates 2024/25
Your total income (employment plus side hustle) determines your tax band:
Personal Allowance: Up to £12,570 (0%)
Basic Rate: £12,571 to £50,270 (20%)
Higher Rate: £50,271 to £125,140 (40%)
Additional Rate: Over £125,140 (45%)
National Insurance Contributions
Self-employed individuals may need to pay:
Class 2 NICs: £3.45 per week (if profits over £12,570)
Class 4 NICs: 9% on profits between £12,570 and £50,270
Class 4 NICs: Additional 2% on profits over £50,270
Record Keeping
Maintain accurate records of your:
Income from all sources
Business expenses
Receipts and invoices
Bank statements related to your side hustle
Frequently Asked Questions
When do I need to register as self-employed?
You should register with HMRC if your side hustle income exceeds £1,000 in a tax year.
What expenses can I claim?
You can claim business-related expenses such as equipment, supplies, travel costs, and a portion of home office expenses if applicable.
When is the tax return deadline?
Self Assessment tax returns must be submitted by January 31st following the tax year end (April 5th).
Important: This calculator provides estimates based on current UK tax rates. For accurate advice specific to your situation, consult a qualified tax professional or HMRC.