UK Side Hustle Tax Calculator 2025/26
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.
Tax year: 2024/25 2024/25 | 2025/26 2025/26 | 2026/27 2026/27
Last verified against GOV.UK rates: 7 May 2026.
Methodology: this calculator uses the main Income Tax rates for England, Wales and Northern Ireland, the standard Personal Allowance, and self-employed Class 4 National Insurance rates. It does not cover Scottish Income Tax bands, student loans, pension contributions, VAT, benefits, tailored reliefs, or personal tax advice.
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.
Important: Income tax bands are different if you live in Scotland. Use the Scottish side hustle tax calculator for a Scottish Income Tax estimate, or check GOV.UK Scottish Income Tax guidance.
Tax Calculation Results
| 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): | % |
Based on this gross side hustle income, Making Tax Digital may apply from . Check HMRC guidance because digital records and quarterly updates may be required.
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): | % |
How Side Hustle Tax Works When You Also Have PAYE Income
HMRC does not usually tax your job and your side hustle as two isolated pots. Your side hustle profit is added to your other taxable income, including PAYE salary, and the combined total determines which Income Tax bands are used.
This matters most if your salary is close to the higher-rate threshold. For example, if your PAYE salary already uses most of the basic-rate band, part of your side hustle profit may be taxed at 40% rather than 20%.
- Use Side Hustle Income for gross income before expenses or allowances.
- Use Side Hustle Expenses for allowable expenses, or for the deduction you want to model, such as the trading allowance.
- Use Annual Salary for your PAYE salary before tax.
Trading Allowance vs Actual Expenses
The trading allowance can exempt up to £1,000 of gross trading income. If your gross side hustle income is £1,000 or less, you may not need to tell HMRC, although some circumstances still require a tax return.
If your gross trading income is more than £1,000, you can usually choose between deducting the £1,000 trading allowance or deducting actual allowable expenses. You cannot claim both for the same trade.
| Scenario | Better deduction to model | Why |
|---|---|---|
| £3,000 freelance income and £150 costs | £1,000 trading allowance | The allowance is higher than actual expenses. |
| £6,000 delivery income and £2,200 costs | Actual expenses | The real business costs are higher than the allowance. |
This calculator estimates tax based on the deduction you enter. It does not automatically choose between trading allowance and actual expenses.
2025/26 Tax Rates Used By This Calculator
For England, Wales and Northern Ireland, the 2025/26 standard Personal Allowance is £12,570. The Personal Allowance is reduced when adjusted net income is over £100,000 and is fully removed at £125,140.
| Band | Taxable income after allowances | Income Tax rate |
|---|---|---|
| Basic rate | Up to £37,700 | 20% |
| Higher rate | £37,701 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
National Insurance On Side Hustle Profit
For 2025/26, self-employed Class 4 National Insurance is charged on profit above the Lower Profits Limit. Class 2 is treated as paid when profits are at or above the Small Profits Threshold, and voluntary Class 2 is £3.50 per week below that threshold.
- Class 4 NI: 6% on profits over £12,570 up to £50,270.
- Class 4 NI: 2% on profits over £50,270.
- Class 2 NI: £0 due above the threshold, but treated as paid for NI record purposes.
When To Register For Self Assessment
You normally need to register for Self Assessment if your gross trading income is over £1,000 in a tax year. New entrants must tell HMRC by 5 October after the tax year ends.
For the 2025/26 tax year, which ends on 5 April 2026, that means registering by 5 October 2026 if you need to complete a return and have not already registered.
When Tax Is Due And Why Payments On Account Matter
The online Self Assessment return and any tax due are normally due by 31 January after the tax year. For 2025/26, the online filing and payment deadline is 31 January 2027.
Payments on account may also apply. HMRC usually asks for them when your previous Self Assessment bill was at least £1,000 and less than 80% of that tax was collected outside Self Assessment, for example through PAYE.
Making Tax Digital For Side Hustlers
Making Tax Digital for Income Tax starts from 6 April 2026 for sole traders and landlords with qualifying income over £50,000. It expands to over £30,000 from April 2027 and over £20,000 from April 2028.
Qualifying income means gross income from self-employment and property before expenses or allowances. If your side hustle is growing, use gross income as the first check, not profit.
Common Side Hustles Covered
This calculator is intended for extra trading income such as freelance work, tutoring, delivery driving, Etsy or eBay trading, Vinted-style reselling where you are trading rather than just selling personal possessions, dog walking, content creation, and online platform income.
Selling personal possessions is not automatically a trade. Buying or making items with the intention of selling them for profit is more likely to be trading income.
Calculator by side hustle
Use a niche calculator landing page if you want examples and FAQs for a specific type of income:
- Freelance Tax Calculator UK
- Vinted Tax Calculator UK
- eBay Tax Calculator UK
- Delivery Driver Tax Calculator UK
- Etsy Tax Calculator UK
- Tutor Tax Calculator UK
- Scottish side hustle tax calculator
Official Sources
Worked Examples
Example 1: £30,000 salary and £4,500 side hustle profit
| Main Income: | £30,000 |
| Side Hustle Income: | £5,000 |
| Side Hustle Expenses: | £500 |
| Side Hustle Profit: | £4,500 |
| Additional Income Tax: | ~£900 |
| National Insurance: | ~£0 |
| Total Additional Tax: | ~£900 |
| Effective Rate: | 20% |
Example 2: £48,000 salary and £10,000 side hustle profit
| Main Income: | £48,000 |
| Side Hustle Income: | £12,000 |
| Side Hustle Expenses: | £2,000 |
| Side Hustle Profit: | £10,000 |
| Additional Income Tax: | ~£3,546 |
| National Insurance: | ~£0 |
| Total Additional Tax: | ~£3,546 |
| Effective Rate: | 35% |
FAQs
Do I pay tax if my side hustle is under £1,000?
If your gross trading income is £1,000 or less, the trading allowance may mean you do not need to tell HMRC about it. You may still need to file a return for other reasons, so check your own position.
Is the £1,000 threshold income or profit?
It is gross trading income before expenses or allowances. A side hustle with £1,200 income and £400 expenses is still over the £1,000 gross income threshold.
Can I use expenses and the trading allowance?
Not for the same trade. You generally choose either the trading allowance or actual allowable expenses, depending on which gives the lower taxable profit.
Will my employer know about my side hustle?
Using this calculator does not send any data anywhere. Filing Self Assessment does not normally notify your employer, but your tax code could be affected if you choose to collect tax through PAYE.
Do I pay National Insurance on a side hustle?
You pay Class 4 National Insurance when self-employed profit is above the Lower Profits Limit. For 2025/26, Class 4 is 6% between £12,570 and £50,270, then 2% above £50,270.
What if my side hustle makes a loss?
A trading loss can be more complex than a simple estimate. You may be able to claim loss relief, but you should check HMRC guidance or speak to a qualified adviser before relying on it.
Do online platforms report my income to HMRC?
Digital platforms may share information with HMRC, but that does not create a new tax. The key question is still whether your activity is taxable trading, property, or other income under existing rules.
When does MTD apply?
MTD for Income Tax starts from April 2026 for qualifying self-employment and property income over £50,000. It expands to over £30,000 from April 2027 and over £20,000 from April 2028.
HMRC News: Making Tax Digital Starts from April 2026
Published: 5 February 2026
HMRC has urged sole traders and landlords with more than £50,000 of qualifying income from self-employment and property to prepare for Making Tax Digital (MTD) for Income Tax. The rules start on 6 April 2026 and require digital records, compatible software and quarterly updates of income and expenses.
HMRC says the rollout applies first to people above the £50,000 threshold, then expands to those above £30,000 from April 2027 and above £20,000 from April 2028. Qualifying income is gross income before tax allowances and expenses, so side hustlers should look at turnover rather than profit when checking whether MTD may apply.
Customers joining MTD for Income Tax in April 2026 will not receive penalty points for late quarterly updates during the first tax year, but HMRC still recommends reading the guidance, choosing compatible software and signing up on GOV.UK.
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.