UK side-hustle tax-free allowance to rise to £3,000 from April 2027

Summary

The amount Britons can earn from a side hustle without paying tax will rise from £1,000 to £3,000 in April 2027, according to the chancellor's budget announcement. Up to 1.4 million people could benefit, with some saving hundreds of pounds in tax. The change to the tax-free "trading" allowance is aimed at people who earn extra money from hobbies or reselling.

Timeline

1. The Guardian

   30 Oct 2026, 07:00 UTCSource ↗

   The Guardian reports that the chancellor confirmed in the budget that the tax-free trading allowance will rise from £1,000 to £3,000 in April 2027, which could benefit up to 1.4 million people.