How much tax to set aside from a side hustle (2026/27)

If you already earn a salary, your side-hustle profit is taxed on top of it. A simple rule for basic-rate taxpayers is to put aside 26% of profit: 20% Income Tax plus 6% Class 4 NI (Class 4 applies only if total self-employed profit is over £12,570).

Rough guide

• Basic rate (total income up to £50,270): about 20% to 26% of profit.
• Higher rate (above £50,270): about 42% of profit (40% tax plus 2% NI).
• Profit under the £1,000 trading allowance: usually nothing.

Worked example

Salary £30,000, side-hustle profit £4,000. Tax 20% = £800. Class 4 NI: profit is under £12,570, so £0. Set aside £800.

Sources

• GOV.UK: Income Tax rates
• GOV.UK: self-employed NI rates

Work out your own figure: the UK Side-Hustle Tax Tracker 2026/27, £4 on Payhip (or the free Lite version) 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 22 Oct 2026. General information, not tax advice; if in doubt, contact HMRC or a qualified adviser.

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