Side Hustle Tax Calculator
Calculate tax on side income when you have a PAYE job. Understand your options and total tax liability.
Enter your income details
We'll show you exactly how much tax you owe and your payment options
Do I pay tax on side income with a full-time job?
Yes, side hustle income is taxable even with a PAYE job. However, the £1,000 trading allowance is tax-free. Above this, register for Self Assessment and pay Income Tax and Class 4 NI. Your side income is added to your salary to determine your tax rate.
How does side income affect my tax bracket?
Side income is added to your PAYE salary. If your salary is £40,000 and you earn £15,000 from a side hustle, your total is £55,000, pushing you into the higher 40% rate. Side income is taxed at your marginal rate.
Trading allowance or claim expenses?
The £1,000 trading allowance is automatic and requires no records. Claiming expenses requires receipts but could save more if your actual expenses exceed £1,000. Our calculator shows which is better.
What are my payment options?
Three options: (1) Do nothing if profit is under £1,000, (2) Register for Self Assessment and file by 31 January, or (3) Ask HMRC to collect via your PAYE code if tax owed is under £3,000.