Side-hustle expenses you can claim (UK)

Allowable expenses are costs incurred wholly and exclusively for the business. They reduce your profit, so you pay less tax.

Common examples

• Stock, materials and postage
• Platform and payment fees (e.g. marketplace or card fees)
• Software, subscriptions and phone/internet (the business share)
• Advertising and website costs
• Business travel (or mileage at 45p/25p)
• Training directly related to your current business
• Accountancy fees

Not allowable

Personal or mixed-use costs (apart from the business share), clothing that isn't a uniform or protective, fines, and entertaining clients.

Expenses or the trading allowance?

If your expenses are under £1,000, the trading allowance often gives a better result.

Sources

• https://www.gov.uk/expenses-if-youre-self-employed
• https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

Work out your own figure: our UK Side-Hustle Tax Set-Aside 2026/27 spreadsheet (free lite version, or the full version for £4 on Payhip) calculates the extra tax and Class 4 NI on top of your PAYE salary.

Written with the help of an AI assistant and checked against GOV.UK on 21 Oct 2026. General information, not tax advice; if in doubt, contact HMRC or a qualified adviser.

Home