Overview
- The Autumn Budget confirmed the trading allowance will rise from £1,000 to £3,000 and take effect from April 2027, leaving the current £1,000 limit in place until then.
- The government estimates about 400,000 people will benefit with an average tax saving of £380, while one outlet has reported a larger possible beneficiary total of about 1.4 million.
- The allowance applies to gross trading income not profit, so total receipts from selling goods or services count toward the threshold and rules about registering for Self Assessment still apply for those above £3,000.
- HMRC already receives marketplace data from new platform-reporting rules that capture sellers with more than 30 sales or over about £1,700, which will increase visibility of higher-volume or higher-earning sellers.
- The change recognises growth in side hustles and should reduce paperwork for many casual sellers but could shift which sellers need to register and face enforcement, so those who trade regularly should check HMRC guidance now.