Side Hustle Tax UK: The £1,000 Trading Allowance

The £1,000 trading allowance lets you earn £1,000 of casual self-employment income tax-free per year - no registration, no Self Assessment

Above £1,000 of trading income you must register with HMRC by 5 October following the tax year of first earnings

You can deduct the £1,000 allowance OR your actual expenses, whichever produces a lower taxable profit - not both

Side income is taxed at your marginal rate on top of your day job, so a higher-rate earner with side income loses 40% plus 2-9% NI to HMRC