The £1,000 trading allowance concerns qualifying gross trading income across your activities, before expenses. It is not £1,000 for each platform and it does not cover every type of extra income.
Selling possessions or running a trade?
Clearing out clothes and household items you already own is different from buying or making goods to sell for profit. HMRC says occasional sales of unwanted personal items generally do not create an Income Tax bill. However, a valuable possession sold for more than £6,000 can need a separate Capital Gains Tax check. A platform reporting sales to HMRC does not by itself mean tax is due.
Paid services, making items for sale and buying stock to resell can be trading. A second employed job is normally handled through PAYE; rental income and investment income have separate rules. Use HMRC’s online-income guidance if unsure.
Gross income is not profit
If qualifying trading receipts total £1,000 or less in the tax year, the allowance may mean you do not need to tell HMRC. Exceptions apply: for example, the allowance is unavailable for some income from your employer or a connected company, and partnership income. Keep records even where you use the allowance.
Above £1,000 gross trading income, check registration requirements. When calculating taxable profit, eligible traders can generally deduct actual allowable expenses or the trading allowance, rather than both.
Another example: £800 from one trading activity and £400 from another is £1,200 combined gross trading income. Costs do not reduce those receipts for checking the £1,000 threshold.
Read HMRC’s allowance rules and exclusions. Benefits, National Insurance and student-loan obligations need their own checks.
Which registration deadline applies?
| Income earned during | Registration deadline where required |
|---|---|
| 6 April 2025–5 April 2026 (2025/26) | 5 October 2026 |
| 6 April 2026–5 April 2027 (2026/27) | 5 October 2027 under current rules |
Starting a side hustle now does not mean you have missed the October 2026 registration deadline for that new income. If already registered, check whether you need a return for the relevant year rather than creating another registration.
Missed 5 October 2026?
If you needed to notify HMRC for 2025/26, act now: register or reactivate Self Assessment, gather records and check your HMRC instructions. Do not wait until January just because October has passed.
HMRC’s current guidance says late registrants receive a filing deadline three months from its letter or email, but tax due for 2025/26 must still be paid by 31 January 2027. The usual online filing deadline is also 31 January 2027. Follow the deadline HMRC gives you. Late notification, filing and payment are different issues; a penalty is not automatically the same in every case.
Check official deadlines and penalty guidance. Seek qualified tax help if your circumstances are complex.
Make the next step small
- Identify your income type and tax year.
- Add gross trading receipts across activities.
- Keep invoices, platform statements and expense records.
- Use HMRC’s guidance to confirm reporting requirements.
- Put the relevant deadlines and a tax-budget review in your calendar.
General UK information, not personalised tax advice. Rules and your circumstances can change.