UK raises tax-free side-hustle allowance to £3,000
The trading allowance will triple from £1,000, potentially benefiting up to 1.4 million people from April 2027.
At a glance
- Tax-free trading allowance increases from £1,000 to £3,000 in April 2027
- Up to 1.4 million people could benefit from the change
- Some individuals could save hundreds of pounds in annual tax
- The allowance covers side income from hobbies and reselling
The UK government has announced an increase to the tax-free trading allowance, which permits individuals to earn money from side activities without paying tax. The allowance will rise from £1,000 to £3,000 in April 2027, according to the budget announcement.
Up to 1.4 million people could benefit from the change, with some saving hundreds of pounds in tax annually. The allowance applies to those earning extra income from hobbies or reselling activities.
Why it matters
The change provides relief for people supplementing their income through informal work, reducing the tax burden on side-hustle earnings.
Original reporting
- The Guardian — WorldUK side-hustle tax-free allowance to rise to £3,000 next year
- The Guardian — BusinessUK side-hustle tax-free allowance to rise to £3,000 next year
This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.
