£1,000 trading allowance calculator

Selling online, babysitting, gardening or doing small jobs on the side? Enter your figures for one tax year (6 April to 5 April) to see whether the £1,000 trading allowance or your actual expenses gives you the lower taxable profit.

Gross trading income this tax year (£) Allowable business expenses (£) Is any of this income from your employer, your spouse's employer, or a company or partnership you're connected to?

Enter your income to see the result.

Track it all year instead

The Free £1,000 Trading Allowance Checker spreadsheet does this sum as you log each sale, and the full UK Side-Hustle Income & Expense Tracker adds a dashboard, monthly totals by tax month and an expenses log.

Get the free checker

How the allowance works

If your gross trading income is £1,000 or less in a tax year, it's usually tax-free and you may not need to tell HMRC (this is called full relief). Above £1,000, you can deduct either the £1,000 allowance or your actual expenses, not both (partial relief). If your expenses are more than £1,000, claiming expenses usually gives a lower profit. If your gross trading income is over £1,000, you must register for Self Assessment by 5 October after the end of the tax year.

Want the longer walkthrough? Read the UK £1,000 trading allowance guide.

Source: HMRC guidance on GOV.UK. This calculator is general guidance, not tax advice, and doesn't cover partnerships, losses or other special cases.