A bit of side income might be completely tax-free, or might need declaring. The £1,000 trading allowance is the dividing line, and we tell you exactly where you stand and handle any return needed.
The Trading Allowance
The trading allowance lets you earn up to £1,000 a year from self-employment or casual work, selling online, odd jobs, a hobby that makes money, without paying tax or even registering, as long as your total from such activity stays under £1,000. Above £1,000 you must register and declare, and you can choose to deduct either the £1,000 allowance or your actual expenses, whichever is better.
Your Tax Help Accountants confirms whether your side income falls within the allowance, and if it exceeds £1,000, registers you, works out whether the allowance or your actual expenses gives the lower tax, and files the return. Clear answers on whether that side income is a problem or not.
Below £1,000 of casual or side income there is usually nothing to report at all. Above it, you can deduct the £1,000 flat or your real expenses, whichever is higher, so a small side hustle need not mean a big tax bill.
The Detail That Matters
A little self-employed or casual income may be completely tax-free thanks to the £1,000 trading allowance, or it may need declaring. The allowance is the dividing line, and above it you choose the method that leaves you paying least.
You can earn up to £1,000 a year from self-employment, casual work, online selling or a money-making hobby without paying tax, and usually without registering or declaring it, provided your total from such activity stays under £1,000.
Once you cross £1,000 you must register and declare. You can then deduct either the flat £1,000 allowance or your actual expenses, whichever is higher, so a small side activity need not mean a big bill.
Online platforms now report seller and earnings data to HMRC, so casual income that crosses the threshold is increasingly visible. Declaring correctly keeps you compliant and avoids penalties.
If your actual expenses exceed £1,000, claiming them instead gives a bigger deduction. We work out which method leaves you paying less and elect for it.
People either worry needlessly about small side income the £1,000 covers, or fail to notice when they cross the threshold and must declare, especially now platforms report to HMRC.
Key Figures
How We Help
We confirm whether your side income is within the £1,000 trading allowance, meaning no tax and often no need to register or declare.
Above £1,000, you can deduct the flat allowance or your actual costs. We work out which leaves you paying less and elect for it.
Where your income exceeds the allowance, we register you and file a simple return, keeping the side income fully compliant.
All the forms, calculations and correspondence handled on your behalf, so you never have to decode HMRC's rules or sit on hold.
A clear fixed fee quoted after a free call, your position explained in plain English, and never a surprise bill.
We act quickly, and where earlier years are involved we put those right too, reclaiming refunds or minimising penalties.
People with small side incomes worry unnecessarily, or fail to declare when they cross the £1,000 line. We tell you clearly which side of it you are on and handle any return, so a side hustle stays simple.
Recent Client Outcome
Someone with a growing online side income was unsure whether they needed to declare it or pay tax.
What we did. We confirmed their income had just crossed £1,000, registered them, compared the flat trading allowance against their actual costs, and elected for whichever gave the lower tax.
The outcome. With modest costs, the flat £1,000 allowance was better, so only the income above it was taxable, and we filed a simple, compliant return.
Knowing exactly which side of the £1,000 line they were on, and picking the better method, kept their side hustle simple and lightly taxed.
Why People Come to Us
Questions Answered
Free fifteen-minute call. Fixed quote within twenty-four hours. Your return filed, every expense claimed, your bill explained, and salon VAT, payroll and accounts handled if you own a salon. Same accountant, start to finish.
Or email info@yourtaxhelp.co.uk, we typically respond within two business hours.
📅 Free consultation calls available weekdays 1pm to 3pm and 7pm to 8pm. Pick a slot that suits you.