SIde hustle trading allowance increase April 2027

soolin

Good news for small traders on various online sites like eBay and Vinted (as well as other categories) the trading allowance is increasing in 2027 to £3000.

https://www.gov.uk/government/publications/income-tax-increasing-the-trading-allowance/increasing-the-trading-allowance

soolin

I’ve added this post in case we get any newbies who believe that legitimately selling their own unwanted items has suddenly become taxable, which is not the case. This increase takes effect from April 2027 so the first tax year to which it will apply is 2027/2028 which means that the current year is still £1000.

messia07

just to confirm, the limit your allowed to make from side hustle is going to be £3000 from April 2027, onwards?

If so, i wonder what ebay are going to do with the automatic reporting to hmrc ( 30 sales / £1700 ), will the limit go up?

soolin

https://forums.moneysavingexpert.com/discussion/comment/82189937#Comment_82189937

That’s correct, the next tax return will still only have the £1000 trading allowance, the one issued in April 28 will have the higher trading allowance.

There’s no way of knowing whether the automatic reporting limit from online sales will increase, however since that didn’t really have a lot to do with tax payable it might just stay the same. We will have to wait and see.