Tax Calculators
Side Hustle Tax Calculator
Selling on eBay, Vinted, Etsy, or Airbnb? Calculate how much tax you owe, check if you qualify for the £1,000 Trading Allowance, and see if you need to register for Self Assessment.
Your Income Details
Determines the tax bracket for your side hustle.
Total amount received from eBay, Vinted, Etsy, Airbnb, etc.
Platform fees, postage, materials, etc.
Total Tax Owed on Side Hustle
£400
📝 Self Assessment Required
Your gross income exceeds £1,000. You must register for Self Assessment and declare this income to HMRC, even if your actual expenses bring your profit down.
The HMRC Platform Reporting Rules (2026)
If you make money from a side hustle, the rules of the game are changing. HMRC has implemented new rules meaning that digital platforms are legally required to collect and report seller data directly to the tax office.
These platforms include:
- Goods marketplaces (eBay, Vinted, Etsy, Amazon)
- Property rentals (Airbnb, Booking.com)
- Freelance services (Fiverr, Upwork, Deliveroo, Uber)
If you sell 30 or more items a year, or make over €2,000 (roughly £1,700), your platform will automatically send your earnings data to HMRC. HMRC will cross-reference this with your tax records to see if you have declared the income.
The £1,000 Trading Allowance Explained
You don't automatically have to pay tax on every penny you earn. The government gives everyone a £1,000 Trading Allowance per tax year.
Gross Income Under £1,000
If your total gross revenue (all the money you took in, before deducting any platform fees, postage, or costs) is £1,000 or less, you are completely exempt. You do not need to register for Self Assessment, and you do not need to tell HMRC anything.
What if I earn more than £1,000?
If your gross revenue is over £1,000, you must register for Self Assessment and declare the income, even if your actual profits are tiny. However, you have a choice on how to calculate your taxable profit:
- Deduct actual expenses: (Revenue - Platform Fees - Postage - Materials = Profit)
- Deduct the Trading Allowance: (Revenue - £1,000 = Profit)
You can choose whichever method gives you the lowest taxable profit. Our calculator above does this math for you automatically.
How much tax will I pay?
Your side hustle profit is added to the salary from your main PAYE job to determine your tax band. Because your main job already uses up your £12,570 tax-free personal allowance, your side hustle profit is usually taxed at your marginal rate:
- Basic Rate taxpayers: 20% Income Tax
- Higher Rate taxpayers: 40% Income Tax
- Additional Rate taxpayers: 45% Income Tax
You may also have to pay Class 4 National Insurance. This is charged at 6% on self-employed profits between £12,570 and £50,270. Class 2 National Insurance was abolished from April 2024 onwards.
Clearing out your wardrobe vs "Trading"
There is a big difference between selling your own old, unwanted personal items (like a wardrobe clearout on Vinted) and "trading".
If you are simply selling your own old clothes or possessions for less than you originally bought them for, this is not a business. It is a personal sale, and you do not pay Income Tax on it, no matter how much you sell.
However, if you buy items specifically to resell them for a profit (e.g., buying cheap clothes in a charity shop to flip on eBay), or you make items to sell (like crafts on Etsy), you are trading. This income is taxable and subject to the £1,000 allowance rules.