From April 2027, small business traders in the UK—including Vinted and eBay sellers—will benefit from an increase in the tax-free threshold, announced by Chancellor John Healey. The threshold will rise from £1,000 to £3,000, allowing sellers to keep more income from side hustles. The change takes effect on April 6, 2027, at the start of the new tax year.
Who benefits from the threshold rise
According to figures from Gov UK, around 1.4 million people currently operate as small business traders. Approximately 400,000 people are expected to reduce their tax bill by £380 on average, while another 100,000 will likely no longer need to report income from smaller side hustles to HMRC.
The side hustle has grown in popularity in recent years, with the rising cost of living meaning that for many, a single traditional salary is no longer enough to make ends meet. In 2025, as many as 2.6 million people made extra money selling belongings online, compared with 450,000 in 2024.
Popular ways to earn extra cash
Popular side hustles in the UK include selling clothes on Vinted, online tutoring, and dog walking. Renting out a parking space near airports or sports grounds through websites such as Just Park and Your Parking Space can also generate income.
Retailers and restaurants also rely on mystery shoppers to check customer service quality. Agencies such as Grass Roots and Retail Maxim pay people to visit shops or eat at restaurants to assess their experience. Websites including Airtasker and TaskRabbit allow users to complete tasks such as pick-up and delivery, assembling flatpack furniture, or repairing clothing.
Teenagers shift away from Saturday jobs
Gen Zs are reportedly moving away from traditional Saturday jobs and picking up alternative income sources. A September study from NatWest Thrive found that just one in seven (15%) 16- and 17-year-olds are making money from casual roles such as working in a clothes shop, stacking shelves, or doing a paper round.
This compares with more than a third (35%) of adults who said they had some kind of Saturday shift or job before school at the same age. The trend could be creating a new teenage economy, with the average youngster having topped up their pocket money by £389 through this means in the last year alone, translating to £640,000,000 in side-hustle cash.
