UK side-hustle tax-free allowance to rise to £3,000 next year

Up to 1.4 million people could benefit from change to trading allowance announced in budget, with some saving hundreds in tax

The amount Britons can earn from a side hustle without paying tax will rise to £3,000 next year in a fillip for those who make extra cash from hobbies or reselling.

Up to 1.4 million people could benefit from the change announced in the budget, with the chancellor confirming the tax-free “trading” allowance will increase from £1,000 to £3,000 in April 2027.

The number of Britons with a side hustle has exploded in recent years, with reselling clothes, tutoring and dog-walking among the popular avenues to create extra income at a time when household finances are under pressure.