# UK raises tax-free allowance on side-hustle income to £3,000 in 2027

- URL: https://talkfuse.com/story/uk-side-hustle-tax-free-allowance-to-rise-to-3000-next-year/
- Published: 2026-10-30T07:00:47+00:00
- Updated: 2026-10-30T07:07:46+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/politics/2026/oct/30/uk-side-hustle-tax-free-allowance-rise-3000
- Topics: Business, UK, World

## Key points

- The tax-free side-hustle allowance rises to £3,000 in April 2027.
- Up to 1.4 million people could benefit.
- Selling personal items at a loss remains non-taxable.

## Summary

The UK will raise the annual tax-free trading allowance for side-hustle income from £1,000 to £3,000 in April 2027. The change, announced in the budget, is intended to reduce tax and reporting burdens for people earning extra money from activities such as reselling, tutoring or dog-walking.

Up to 1.4 million people could benefit, including an estimated 400,000 whose tax bills may fall by an average of £380; around 100,000 may no longer need to report their trading income to HMRC. People earning more than £3,000 can compare using the allowance with deducting eligible business expenses and capital costs. Selling personal belongings for less than their original purchase price is not taxable, while online platforms must report sellers who make at least 30 sales or €2,000 in a year.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.