UK Gig Economy & Side Hustle Tax: Every Key Number for 2026/27
By Tom Whitfield · Last updated 14 August 2026
The numbers that govern UK gig and side-hustle tax in 2026/27: the first £1,000 of gross trading income is tax-free (trading allowance); above it you register for Self Assessment by 5 October 2027. Profit is tax-free up to the £12,570 Personal Allowance, then taxed at 20% to £50,270, with 6% Class 4 National Insurance once profit alone passes £12,570. Delivery drivers deduct 55p a mile (first 10,000 miles). Platforms report anyone with 30+ sales or ~€2,000 (~£1,700) to HMRC every January. Everything is due by 31 January 2028.
This page is the reference sheet behind every calculator on this site. Each figure below is the 2026/27 value for England, Wales and Northern Ireland (Scottish Income Tax bands differ; National Insurance and all allowances are UK-wide), verified against the gov.uk source linked in each section.
Allowances — what's tax-free
| Allowance | 2026/27 amount | Applies to |
|---|---|---|
| Trading allowance | £1,000 | Gross income from self-employment, casual work and selling (one pot across all platforms combined) |
| Property allowance | £1,000 | Property income — a separate pot from the trading allowance |
| Rent-a-Room relief | £7,500 (£3,750 each if shared) | Furnished accommodation in your only or main home |
| Personal Allowance | £12,570 | All income; tapers away £1 per £2 above £100,000 |
| Dividend allowance | £500 | Dividend income |
| Capital gains annual exempt amount | £3,000 | Gains on assets; single personal items under £6,000 are exempt (chattels rule) |
Source: gov.uk — tax-free allowances on property and trading income.
Income Tax rates (England, Wales, NI)
| Band | Total income | Rate |
|---|---|---|
| Personal Allowance | up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | over £125,140 | 45% |
Side-hustle profit stacks on top of any salary, so it's taxed at your highest rate. Source: gov.uk — Income Tax rates.
National Insurance for the self-employed
| Charge | 2026/27 | Notes |
|---|---|---|
| Class 4 — main rate | 6% | On profit £12,570–£50,270. The threshold looks at self-employed profit alone — a salary doesn't count towards it |
| Class 4 — upper rate | 2% | On profit above £50,270 |
| Class 2 | £0 | Treated as paid at profit of £7,105+ (protects State Pension); voluntary at £3.65/week below that |
Property/letting income (including Airbnb hosting) carries no Class 2 or Class 4 NI. Source: gov.uk — self-employed NI rates.
Mileage rates (simplified expenses / AMAP)
| Vehicle | First 10,000 business miles | Above 10,000 |
|---|---|---|
| Car or van | 55p (up from 45p on 6 April 2026 — first rise since 2011) | 25p |
| Motorcycle / scooter | 24p | 24p |
| Bicycle | 20p | 20p |
Mileage replaces all vehicle running costs — never claim fuel on top. Source: gov.uk — mileage rates.
Platform reporting to HMRC
| Rule | Value |
|---|---|
| Reporting threshold | 30 sales/jobs or ~€2,000 (~£1,700) per platform, per calendar year |
| In force since | 1 January 2024 (first reports filed January 2025) |
| What's reported | Name, address, date of birth, National Insurance number, gross income, platform fees, bank account |
| Reporting period | Calendar year (Jan–Dec), filed each January |
A report is not a tax bill — selling personal possessions stays non-taxable. See the platform-reporting guide.
Self Assessment deadlines for 2026/27 income
| What | Deadline |
|---|---|
| Register (if gross trading income passed £1,000) | 5 October 2027 |
| Paper return | 31 October 2027 |
| Online return and payment | 31 January 2028 |
| Payments on account (bills over £1,000) | 31 January and 31 July |
| Late-filing penalty | £100 immediately, rising from 3 months late |
| Keep records for | At least 5 years after the 31 January deadline |
Making Tax Digital and VAT thresholds
| Threshold | Value | From |
|---|---|---|
| MTD for Income Tax — phase 1 | £50,000 gross self-employment + property income | April 2026 (live now) |
| MTD — phase 2 | £30,000 | April 2027 |
| MTD — phase 3 | £20,000 | April 2028 |
| MTD quarterly update deadlines | 7 August, 7 November, 7 February, 7 May (cumulative) | |
| VAT registration | £90,000 taxable turnover | rolling 12 months |
MTD thresholds test gross income (turnover), not profit — check yours with the qualifying-income checker.
Rules of thumb
- Basic-rate employee with a side hustle: set aside 20p per £1 of profit; higher-rate, 40p.
- Full-time gig worker (no other job): set aside roughly 20–25% of profit — nothing is owed on the first £12,570, then ~26% applies above it.
- A car-based courier driving 8,000 business miles deducts £4,400 before tax is even calculated.
Run your own numbers: side hustle, sole trader, or any of the platform calculators — each shows the full working.