- In April 2027, the tax-free allowance for side-hustle earnings is set to rise by £2,000, increasing the threshold from £1,000 to £3,000, which will benefit around 1.4 million Britons making extra money through platforms like eBay and Vinted.
- Under the updated guidance announced by Chancellor John Healey, individuals earning more than £3,000 in gross revenue from buying or making items to sell for a profit must inform HM Revenue and Customs (HMRC) by registering for Self Assessment.
- Side-hustle participation has grown rapidly amidst rising living costs, with HMRC figures showing 2.6 million people sold items on platforms such as Etsy, Vinted, and eBay last year compared to just 450,000 in 2024.
- HMRC classifies activities such as reselling car boot finds, upcycling furniture, or selling bespoke art as trading, whereas clearing out personal, unwanted belongings remains tax-free unless an individual item fetches over £6,000.
- People earning above the tax-free limit may be liable to pay tax if their combined total income, including their primary job, exceeds the basic personal allowance threshold of £12,570.
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