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Glossary · Tax

Trading allowance

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By the Money Guide editorial team · Editorial responsibility: Kaiser Khan, Editorial Director · How we check facts

Definition: A £1,000 tax-free allowance for casual self-employed or side-hustle income — no need to declare or register with HMRC below this.

Above £1,000 you must register for Self Assessment. You can then either deduct actual expenses or claim the £1,000 as a flat deduction — not both. Separate from the £1,000 property allowance.

Primary source: gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

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