Short tax guide
Tax on Self-Employed Income/Side Hustles
The essentials for students earning money from tutoring, freelancing, delivery work, reselling for profit or another side hustle.
When do you need to tell HMRC?
If you earn more than £1,000 in gross trading income during a tax year, you have to register as a sole trader for Self Assessment. That threshold applies to income before expenses, not profit.
For example, this can include income from:
- Tutoring
- Freelancing
- Delivery work
- Reselling for profit
- Other self-employed income
What tax do you pay?
You pay Income Tax on your taxable profits, not total sales. Profit is roughly income minus allowable business expenses.
For 2026/27, most people have a £12,570 Personal Allowance.
Self-employed Class 4 National Insurance starts when profits exceed £12,570:
- 6% on profits from £12,570 to £50,270
- 2% on profits above £50,270
How to register
Register for Self Assessment as a sole trader through GOV.UK.
You need to tell HMRC by 5 October after the end of the tax year in which you become liable to file this.
Important deadlines
The tax year runs from 6 April to 5 April.
Keep records of
- Money received
- Invoices/payments
- Allowable business expenses
- Receipts
- Platform fees
- Mileage or other relevant costs
Tax disclaimer
Tax depends on your individual circumstances; check current HMRC guidance if unsure.