Side hustlers can earn £3,000 tax-free from April 2027 after the chancellor triples the allowance in the budget

Up to 1.4 million Britons stand to benefit after the chancellor confirmed the tax-free trading allowance will triple from £1,000 to £3,000 in April 2027, with the change announced in the budget. Around 400,000 people will see their tax bill fall, saving an average of £380 each. A further 100,000 will be freed from any obligation to declare their trading income to HMRC.

Popular side hustles include reselling clothes on eBay, Vinted and Etsy, tutoring, and dog-walking.

Last year 2.6 million people earned money through online selling platforms, up from just 450,000 in 2024.

Sarah Coles of AJ Bell said the higher allowance 'doesn't just save tax, it also takes the hassle of admin off' small earners.