Side Hustle Tax Calculator 2026/27
Last updated: March 2026 — Uses official HMRC rates for the 2026/27 tax year
Calculate your Income Tax and Class 4 National Insurance on any UK side hustle income. Covers the £1,000 trading allowance, expense deductions, and Self Assessment obligations.
How This Calculator Works
Enter your gross side hustle income and any allowable expenses. The calculator works out your taxable profit, then applies 2026/27 Income Tax rates and Class 4 NI rates alongside any PAYE employment income you declare. The result shows your total tax bill, effective tax rate, and net take-home. All calculations run in your browser — nothing is stored.
Step 1 — Gross income
Enter total earnings before any deductions
Step 2 — Deduct expenses
Claim actual costs or the £1,000 trading allowance
Step 3 — See your tax
Income Tax + Class 4 NI calculated at 2026/27 rates
Class 4 National Insurance for Self-Employed
Self-employed workers pay Class 4 NI on their annual profits — not on gross income. In 2026/27 the rates are 9% on profits between £12,570 and £50,270, and 2% above £50,270. Class 2 NI was abolished from April 2024 and is no longer payable. Your Class 4 contributions count towards qualifying years for the UK State Pension.
The £1,000 Trading Allowance Explained
If your total side hustle income is £1,000 or less in 2026/27, you pay no tax and do not need to register for Self Assessment. Above £1,000, you must register and can then deduct either the £1,000 allowance or your actual expenses — whichever reduces your taxable profit more. The allowance applies to your total self-employment income across all platforms combined. Read our full side hustle tax guide for 2026/27 for detailed worked examples.
Platform-Specific Tax Guides
This calculator works for all UK self-employment income. For platform-specific expense deductions, HMRC reporting rules, and earnings data, see the dedicated guides:
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Frequently Asked Questions
What is the £1,000 trading allowance?▾
The trading allowance lets you earn up to £1,000 per year from self-employment without paying tax or registering for Self Assessment. If your income exceeds £1,000, you can deduct the allowance instead of tracking actual expenses — whichever gives the lower taxable profit.
Do I need to register for Self Assessment for my side hustle?▾
Yes, if your gross side hustle income exceeds £1,000 in any tax year, you must register for Self Assessment with HMRC by 5 October following the end of that tax year. For 2026/27 income, the deadline is 5 October 2027. You can register at gov.uk/log-in-file-self-assessment-tax-return.
What expenses can I claim on my side hustle?▾
You can deduct any expenses that are wholly and exclusively for your business. Common deductions include: mileage (45p/mile for the first 10,000 miles), phone costs, equipment, software subscriptions, materials, packaging, platform fees (e.g. Etsy or Fiverr charges), and a proportion of home office costs. You cannot deduct personal expenses.
What is Class 2 and Class 4 National Insurance for self-employed people?▾
Self-employed workers pay two types of NI. Class 4 NI is the main charge: 9% on profits between £12,570 and £50,270, and 2% above £50,270 in 2026/27. Class 2 NI was abolished from April 2024 — it is no longer payable. Your NI contributions count towards your State Pension.
How does side hustle income affect my PAYE tax code?▾
If you also have a PAYE job, HMRC may adjust your tax code to collect side hustle tax through your payslip. Alternatively, you file a Self Assessment return each year and pay any tax owed by 31 January. The calculator shows your combined tax position when you enter both your employment income and side hustle profit.
Does Deliveroo, eBay, or Vinted report my earnings to HMRC?▾
Yes. Under new digital platform reporting rules (in force from January 2024), UK platforms including eBay, Vinted, Etsy, Airbnb, Fiverr, and Upwork must report seller earnings directly to HMRC. This means HMRC may already have data on your income before you file. It is always better to declare income proactively.
What is the penalty for not declaring side hustle income?▾
HMRC can charge penalties of up to 100% of unpaid tax for deliberate non-disclosure, plus interest on the unpaid amount. For careless errors, penalties are 15–30%. Voluntarily disclosing unpaid tax through HMRC's online disclosure service significantly reduces penalties.
Can I deduct the trading allowance if I have multiple side hustles?▾
The £1,000 trading allowance applies to your total self-employment income from all sources combined — not per platform. If you earn £600 on Etsy and £500 on eBay (£1,100 total), you exceed the allowance and must register for Self Assessment.