HMRC Compliance Checker

Register or
Relax?

Answer 3 quick questions to find out if your side hustle income is tax-free or if you need a UTR number.

How much did you earn?

Add up all revenue from the tax year (before expenses).

What is the £1,000 Trading Allowance?

The Trading Allowance is a tax-free exemption for individuals making small amounts of income from "trading" (selling goods or services). It was introduced to stop HMRC from being overwhelmed by tiny tax returns.

The Short Answer

If your GROSS income is under £1,000, keep the change.

HMRC defines 'Gross' as your total revenue before you take away any expenses. If you bill £1,100 but have £500 in costs, you STILL need to register because your revenue was over £1,000.

In Plain English

What is "Miscellaneous Income"?

This allowance also covers 'miscellaneous' property income (like renting out a driveway) and equipment hire. It does NOT cover rental income from a spare room (that's the Rent-a-Room scheme).

Threshold FAQs

You only get one £1,000 allowance per person, not per business. You must add all your side hustle revenue together to see if you hit the limit.

No. You have a choice: claim the £1,000 allowance tax-free OR calculate your actual expenses. If your costs are over £1,000, don't use the allowance—claim the actual expenses instead.