Do UK Students Have to Pay Tax on Side Hustle Money?

Short answer: often no, but not always. Two tax-free allowances cover many student side hustles, and working out which applies to you takes about five minutes. This guide is general information, not tax advice, so check with HMRC for your own situation.

The figures below apply to the 2026 to 2027 tax year, which runs from 6 April 2026 to 5 April 2027. They were checked against GOV.UK on 7 October 2026.

The two allowances that matter

• Personal Allowance: £12,570. This is the income you do not pay Income Tax on.

• Trading allowance: up to £1,000 of income a year from self-employment, casual services such as babysitting or gardening, and hiring out personal equipment such as power tools.

They are separate allowances, so one does not use up the other.

If you earn £1,000 or less from side work

If your gross income from these activities is £1,000 or less in a tax year, you generally do not need to tell HMRC. Gross means the total you received before taking off any costs.

You still need to keep records of what you earned. There are exceptions, for example if you want to claim a loss, so read the HMRC guidance if that applies to you.

If you earn more than £1,000

You need to register for Self Assessment by 5 October after the tax year ends. Income earned in the 2026 to 2027 tax year means registering by 5 October 2027.

You can then either use the allowance, which takes up to £1,000 off your income, or deduct your actual expenses instead. You cannot do both. If your real costs are higher than £1,000, claiming expenses may leave you better off.

When you cannot use the trading allowance

You cannot use it for income from a company you or someone connected to you owns or controls, a partnership you or someone connected to you is part of, or your employer. The same applies to the employer of your spouse or civil partner. So extra paid work for the employer you already work for does not qualify.

An example

This is an illustration, not real data. Say you earn £600 from tutoring and £300 from paid design work over the tax year. That is £900 gross, which is under £1,000, so you generally would not need to tell HMRC, though you would keep your invoices and bank records. If you had earned £1,400 instead, you would register for Self Assessment.

What records to keep

HMRC suggests copies of invoices, a spreadsheet of your income, emails confirming payments, statements from whoever paid you, and bank statements. HMRC can charge a penalty if your records are not accurate, complete and readable.

Surveys, online tasks and reselling

Whether income from surveys or online tasks counts as trading depends on your circumstances. Buying things to resell is generally treated as trading, while selling your own unwanted belongings is treated differently, and HMRC has separate guidance on selling goods or services online. If you are unsure whether the allowance applies to you, the HMRC Income Tax helpline can tell you.

If you are an international student

Student visa holders face separate work rules, and self-employment is generally not allowed. Check your visa conditions, and ask your university's international student team before you earn anything on the side.