Do I need to pay tax on my side hustle?

The "side hustle" economy is booming, and HMRC is watching closer than ever. Check their campaign here. However, 2026 has brought some welcome news for casual sellers.

The New £3,000 Threshold

As of 2026, the gross income reporting threshold for "trading income" has been lifted to £3,000. This means if you are just selling old clothes or dog-walking on the side and your total turnover is under £3,000, you generally no longer need to file a full Self-Assessment tax return. Also worth mentioning that it's only the profit on the items you sell that you pay tax on in the end so keep your records!

​The £1,000 Allowance

Note that while the reporting threshold is higher, the Trading Allowance is still only £1,000. If you make a profit of over £1,000 but under £3,000, you may still owe tax, but you can now pay it through a simplified online service rather than a full tax return. A word of warning, a tax return ensures you pay the right amount of tax!

​Digital Platforms

HMRC now receives data directly from platforms like Vinted, eBay, and Airbnb. If your activity looks like a "trade" (buying to flip for profit) rather than just clearing out your loft, they will expect a notification.