UK Side Hustle Tax Calculator 2026/27
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
Use the 2025/26 UK side hustle tax calculator if you need the previous tax-year guidance.
Last updated: 7 May 2026.
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.
2026/27 rates: GOV.UK has published the 2026/27 Income Tax and self-employed National Insurance rates used on this page. Future Budgets or HMRC updates could still change guidance, so treat results as estimates and check the official pages before making decisions.
Important: Income tax bands are different if you live in Scotland.
Calculated estimate
Tax Calculation Results
This estimate used Scottish income tax bands because Scotland is selected.
- Estimated take-home profit
- ~£
- Additional Income Tax
- ~£
- National Insurance
- ~£
| 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.
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 2026/27
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: treated as paid when profits are at or above the small profits threshold; voluntary Class 2 is £ per week below that threshold
- Class 4 NICs: 6% 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).
When does Making Tax Digital apply?
For Income Tax, MTD applies from April 2026 if qualifying income from self-employment and property is over £50,000. It expands to over £30,000 from April 2027 and over £20,000 from April 2028.
Example Calculations
Example 1
| Main Income: | £30,000 |
| Side Hustle Income: | £5,000 |
| Side Hustle Expenses: | £500 |
| Side Hustle Profit: | £4,500 |
| Additional Tax: | ~£900 |
| National Insurance: | ~£0 |
| Total Additional Tax: | ~£900 |
| Effective Rate: | 20% |
Example 2
| Main Income: | £48,000 |
| Side Hustle Income: | £12,000 |
| Side Hustle Expenses: | £2,000 |
| Side Hustle Profit: | £10,000 |
| Additional Tax: | ~£3,546 |
| National Insurance: | ~£0 |
| Total Additional Tax: | ~£3,546 |
| Effective Rate: | 35% |