In brief

• From 6 April 2027, the UK tax-free allowance for casual trading income will rise from £1,000 to £3,000 a year.
• The change was announced by the Chancellor of the Exchequer in the budget.
• Up to 1.4 million people could benefit from the change.
• Until April 2027, the existing £1,000 threshold still applies.

The threshold will triple

From 6 April 2027, the UK tax-free allowance for casual trading income will rise from £1,000 to £3,000 a year (Trading Allowance UK Budget Change: Could Your Side-Hustle Earnings Be Tax-Free Up to £3,000? What UK’s New HMRC Rules Mean for eBay, Vinted and Etsy Sellers – sundayguardianlive.com) (UK side-hustle tax-free allowance to rise to £3,000 next year – The Guardian) (Boost for eBay and Vinted sellers as amount of side hustle money you can earn tax-free rises to £3,000 - The Mirror – co.uk). The change was announced by the Chancellor of the Exchequer in the budget. The allowance covers the total of all qualifying trading income, just like the current £1,000 threshold.

Who this affects

Up to 1.4 million people could benefit from the change. It applies to people who earn extra money by selling clothes, reselling items or providing services outside their main job, for example tutoring or dog walking.

When the current allowance applies

In the 2026/27 tax year, the £1,000 threshold still applies. The new rules will take effect only from April 2027.

What happens above the threshold

Currently, a person whose additional income exceeds £1,000 a year must register for self-assessment with HMRC. If gross income falls within the new £3,000 limit, no income tax is payable on it. What counts is income, not profit after deducting expenses.