Earning money on the side? Estimate the income tax and National Insurance you might owe for the 2026/27 tax year, and how much to set aside each month. It includes the £1,000 trading allowance and Scottish tax rates.
- Free to use
- No sign-up needed
- Works on phone and desktop
Estimate for the 2026/27 tax year (6 April 2026 to 5 April 2027) using HMRC rates. It assumes you have no other untaxed income, student loan or pension adjustments, and that your salary uses your Personal Allowance first. This is not tax advice. Check GOV.UK or speak to an accountant for your situation.
How to use the side hustle tax calculator
- Enter your total side hustle income for the year, before costs.
- Add your allowable business expenses.
- Enter any salary from a job, so the calculator uses the right tax band.
- Choose where you live, then read your estimate and the notes.
Key 2026/27 figures used
- Personal Allowance: £12,570, reduced by £1 for every £2 of income over £100,000.
- Income tax (England, Wales, NI): 20% basic rate, 40% higher rate, 45% additional rate. Scotland has its own bands.
- Class 4 National Insurance: 6% on profits between £12,570 and £50,270, and 2% above that.
- Trading allowance: the first £1,000 of trading income is tax-free. You can use it instead of claiming expenses.
Frequently asked questions
Do I need to tell HMRC about my side hustle?
Usually, if your trading income is over £1,000 in a tax year you need to register for Self Assessment. Check GOV.UK for your situation.
Should I use the trading allowance or claim expenses?
Use whichever gives the lower profit. The calculator picks the better option for you.
Does this include student loan repayments?
No. It doesn’t include student loans, pension contributions or other income such as dividends or rent.
Is this tax advice?
No. It’s an estimate. For advice on your situation, speak to an accountant or check GOV.UK.