The trading allowance is a £1,000 tax-free allowance for income from self-employment, selling goods or providing services.
What it covers
Income from selling on eBay, Etsy, Vinted, Depop or other platforms; freelance or casual work; tutoring; gardening or other occasional services.
How it works
- If your total trading income is £1,000 or less, you do not need to declare it or pay tax on it
- If your income exceeds £1,000, you must register for Self Assessment and declare the income
- You can choose to deduct the £1,000 allowance or your actual business expenses — whichever is more beneficial
This is general information, not tax advice. HMRC guidance on the trading allowance is at gov.uk. For complex situations, consult an accountant.