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Side hustle tax calculator 2026/27

The extra Income Tax and National Insurance on income from a side hustle, worked out on top of your salary from HMRC's published rates, with the £1,000 trading allowance and whether Making Tax Digital applies to you.

Self-employed as your main work? The self-employed tax calculator also covers CIS.

About you
Where you live Scotland sets its own Income Tax rates.
Your job
Your yearly pay before tax, from all your jobs together. Your P60 shows it for a full tax year.
Your side hustle
Everything the side hustle brought in during the year, before taking anything off.
What it cost to run, such as materials, stock or fees. Leave blank if none.

How it is worked out

Your salary uses your personal allowance and tax bands first. The side hustle profit (income less expenses) goes on top, so it is taxed at whatever rate your salary leaves. The calculator works out the Income Tax on salary and profit together, then takes away the Income Tax on the salary alone. Class 4 National Insurance is worked out on the profit alone: your salary does not count towards it. HMRC's rates for 2026/27 (6 April 2026 to 5 April 2027) in England, Wales and Northern Ireland:

Personal allowance£12,570
Reduced by £1 for every £2 of income over £100,000
Income Tax, basic rate 20%£12,571 to £50,270
Income Tax, higher rate 40%£50,271 to £125,140
Income Tax, additional rate 45%over £125,140
Class 4 National Insurance 6%profit over £12,570 up to £50,270
Class 4 National Insurance 2%profit over £50,270
Class 2 National Insurancetreated as paid from £7,105 profit; voluntary £3.65 a week below
Trading allowance£1,000

A worked example

A salary of £30,000, and a side hustle bringing in £5,600 with £600 of expenses: a profit of £5,000. The salary already uses the personal allowance, so the profit is taxed at 20%: £1,000.00. The profit is not over £12,570, so there is no Class 4. Total extra: £1,000.00. The bill is £1,000 or more, and only 78% of the year's tax was taken through PAYE, so payments on account apply: January would be about £1,500.00 if none were made before.

What this calculator does not cover

Questions

Do I pay tax on a side hustle?

If your side income before expenses is more than £1,000 in a tax year, you need to tell HMRC through Self Assessment. The profit is added to your salary and taxed at your rate once your personal allowance is used: 20% up to £50,270, 40% up to £125,140 and 45% above (England, Wales and Northern Ireland, 2026/27). Class 4 National Insurance is charged on the profit alone: 6% of profit over £12,570. Income Tax rates on GOV.UK

What is the £1,000 trading allowance?

If your trading income before expenses is £1,000 or less, you do not need to tell HMRC or register for Self Assessment for it, though you must keep records. Above that, you can take the £1,000 allowance off your income instead of your actual expenses: one or the other, not both. It cannot be used for income from your employer, or from a company or partnership you or someone connected to you controls. The trading allowance on GOV.UK

When do I need to register for Self Assessment?

By 5 October after the end of the tax year the income was in: 5 October 2027 for 2026/27. You need to register if you have not sent a tax return before, or did not need to send one last year. The return and any tax are then due by 31 January 2028. Register for Self Assessment on GOV.UK

Is selling my own things a side hustle?

Usually not. If you are selling personal possessions you no longer want, you probably do not have to pay Income Tax on them. You are probably trading if you buy things intending to sell them for a profit, or make things to sell, including as a hobby. Selling an item for a large amount can bring in Capital Gains Tax instead; GOV.UK explains when. Income from online platforms on GOV.UK

Do online platforms tell HMRC what I sell?

Yes. Digital platforms in the UK report sellers' details and income to HMRC each year, by the following January. A platform reporting you does not automatically mean you owe tax: tax is due only if you are trading or making a capital gain. Selling on a digital platform on GOV.UK

Does my salary count towards Making Tax Digital?

No. Qualifying income is self-employment and property income before expenses, and employment income is not part of it. It applies from April 2026 if your 2024–25 return shows more than £50,000; from April 2027 if your 2025–26 return shows more than £30,000; from April 2028 if your 2026–27 return shows more than £20,000. You can also sign up voluntarily. Making Tax Digital eligibility on GOV.UK

Will I have to make payments on account?

HMRC ask for them unless your Self Assessment bill is less than £1,000, or more than 80% of the tax you owe was taken at source. Tax taken from your salary through PAYE counts as taken at source. For example, with a £30,000 salary and £5,000 of profit, 78% is taken through PAYE and the bill is £1,000.00, so they do apply. Payments on account on GOV.UK

Why is there no Income Tax figure for Scotland?

Scotland sets its own Income Tax rates and bands, and this calculator only holds the rates for England, Wales and Northern Ireland. Rather than show a figure from the wrong rates, it shows National Insurance, which is the same across the UK. Scottish Income Tax on GOV.UK

Sources

HMRC's published rates for 2026/27, last checked against GOV.UK on 22 September 2026.