Side hustles in the UK: realistic ideas and the tax rules

Updated

Side hustle ideas that work in the UK

Skills you already use at work are often the quickest to sell, because you can start without training or stock.

Side hustle ideas: what you need and which tax rule applies
IdeaFrom home?What you needTax rule
Writing, editing or proofreadingYesA few samples of your work.Trading income
Online tutoringYesStrong subject knowledge; a DBS check may be needed to teach children.Trading income
Bookkeeping or admin for small businessesYesConfidence with spreadsheets or accounting software.Trading income
Design or website workYesA portfolio. Free tools are enough to start.Trading income
Creating content onlineYesTime: ad or sponsorship income can take months, if it comes at all.Check with HMRC's income checker
Selling things you no longer needYesPhotos and honest descriptions.Usually no tax on personal items
Making or buying things to resellYesMoney for stock and a record of costs.Likely to be trading
Renting a room in your homeYesA furnished spare room and a lodger you have checked.Rent a Room Scheme
Hiring out equipment you ownPartlyTools or kit people want.Trading income
Pet sitting and dog walkingNoLocal clients; check your insurance.Trading income
Delivery and driving appsNoA vehicle or bike and insurance that covers the work.Trading income
The list is our own selection. Before you start, check your employment contract for rules on outside work, and whether the work needs a licence, insurance or a criminal record check.

The tax rules for side income

  • The £1,000 trading allowance. Gross income of up to £1,000 a year from self-employment, casual services such as babysitting or gardening, or hiring out personal equipment is tax-free, and you usually do not need to tell HMRC. Above £1,000 you can deduct the allowance instead of your actual expenses, but not both. It cannot be used at all in a year when you have trading income from your employer or from a company you or someone connected to you owns or controls (HMRC).
  • When to register. With gross trading income over £1,000 in a tax year (6 April to 5 April), you must register for Self Assessment by 5 October after that year ends (GOV.UK).
  • Tax on the profit. If your job already uses your £12,570 Personal Allowance, side profit is taxed at the rate you pay on the top slice of your income: 20% for basic-rate taxpayers outside Scotland in 2026 to 2027 (GOV.UK). Class 4 National Insurance starts only once self-employed profit is over £12,570 (GOV.UK).
  • Renting a room. The Rent a Room Scheme lets you earn up to £7,500 a year tax-free from letting furnished accommodation in your own home, or £3,750 if you share the income (GOV.UK).

If you are not sure which rule applies, HMRC's additional income checker covers selling things, casual jobs, renting out part of your home and creating content online.

Selling online: when platforms report you to HMRC

Since 1 January 2024, apps and websites that let you sell goods or services may have to collect your details, including your National Insurance number, and report your income to HMRC each year by 31 January (HMRC guidance for sellers).

  • They do not have to report you if you made fewer than 30 sales of goods in the calendar year and received 2,000 euros (about £1,700) or less. That exception does not cover services or rentals (HMRC).
  • A report does not mean you owe tax. You are unlikely to pay tax on personal items you sell, but buying or making goods to sell at a profit is likely to be trading.
  • Reports cover the calendar year and HMRC taxes the tax year, so keep your own records of sales and costs.

Be wary of any course, starter kit or “opportunity” that asks for money up front; the warning signs are the same as for work from home job scams. If your side hustle is turning into your main work, our freelance guide covers the next steps.

Common questions

How much can you earn from a side hustle before paying tax in the UK?

The first £1,000 of gross trading income in a tax year is tax-free under the trading allowance. Letting furnished accommodation in your own home has a separate limit of £7,500 a year under the Rent a Room Scheme, or £3,750 if you share the income.

Do I have to register as self-employed for a side hustle?

Yes, if your gross trading income is more than £1,000 in a tax year. You must register for Self Assessment by 5 October after the tax year ends: 5 October 2026 for the year to 5 April 2026. Registering late can mean a penalty.

Will Vinted or eBay report me to HMRC?

They may. Since 1 January 2024, digital platforms may have to report sellers to HMRC each year, unless the seller made fewer than 30 sales of goods and received 2,000 euros (about £1,700) or less. Being reported does not mean you owe tax: HMRC says you are unlikely to pay tax on personal items you sell, but buying or making things to sell at a profit is likely to be trading.

What side hustles can I do from home in the UK?

Writing and editing, online tutoring, bookkeeping or admin for small businesses, design and website work, creating content, selling online and letting a spare room can all be done from home. Most count as trading income, so the £1,000 trading allowance and Self Assessment rules apply.