Side Hustle Tax Calculator UK
Find out how much of your side hustle income you actually keep after tax and NI.
You keep from your side hustle
£9,621
out of £12,000 (19.8% effective tax rate on side income)
Total Income
£47,000
Total Take-Home
£38,340
Overall Effective Rate
18.4%
Tax Breakdown
Income Tax (on combined income)
Personal allowance: £12,570
£6,686
Employment NI (Class 1)
8% between £12,570 - £50,270, 2% above
£1,794
Self-Employment NI (Class 2)
£3/week if profits over £6,725
£179
Self-Employment NI (Class 4)
6% between £12,570 - £50,270, 2% above
£0
Trading Allowance Used
First £1,000 of self-employment income is tax-free
-£1,000
Extra tax from side hustle
£2,379
Tax: £2,200 + Class 2 NI: £179 + Class 4 NI: £0
Side Hustle Tax in the UK
If you earn money from a side hustle alongside your main employment, you need to understand how it affects your tax bill. Your side income is added on top of your salary, so it is taxed at your marginal rate. If your salary already uses your personal allowance, every pound of side income is taxable (after the £1,000 trading allowance).
You will also pay Class 2 and Class 4 National Insurance on self-employment profits. Class 2 is a flat weekly rate, while Class 4 is a percentage of profits. You must register for Self Assessment and file a tax return if your side income exceeds £1,000.