If you earn money doing jobs for other people, tax is part of the deal. The good news is that small amounts are often tax-free. This is general information, not tax advice, so check GOV.UK or speak to an accountant for your own situation.

The £1,000 trading allowance

You can have up to £1,000 of gross trading income each tax year tax-free. It covers things like self-employment, casual services such as gardening or babysitting, and hiring out your own equipment, such as power tools.

• Gross income of £1,000 or less: you generally do not need to tell HMRC, though you should still keep records.
• Gross income over £1,000: you must register for Self Assessment.
• If you use the allowance you cannot also deduct your expenses against that income. Once you are over £1,000 you can choose between the allowance and claiming your actual expenses, whichever works out better.

The allowance is not available for income from a company you or a connected person controls, or from your employer or your partner's employer.

A worked example

Say you earn £600 over the tax year from gardening jobs and nothing else from trading. That is under £1,000, so you would generally have nothing to declare. If you earn £2,500 instead, you would register for Self Assessment and then choose between two ways to work out your profit: deduct the £1,000 allowance from your income, or deduct your actual costs, such as fuel, materials and tools. You use whichever gives the smaller taxable profit. Keep the receipts either way, so you can pick the better option.

What platforms report to HMRC

UK rules require online platforms to collect certain details from the people who earn through them and to report them to HMRC once a year. For individuals that means your name, address, date of birth and National Insurance number. This is a reporting rule, not a tax. The tax you owe depends on your total income.

Keep simple records from day one

1. Keep a record of every job: date, customer, amount you were paid.
2. Save receipts for materials, fuel and tools.
3. Put your income and costs in a simple spreadsheet or app each month.

Key dates to know

• The UK tax year runs from 6 April to 5 April.
• If you need to register for Self Assessment, you must do so by 5 October after the end of the tax year in which you started earning.
• An online Self Assessment return is normally due by 31 January after the end of the tax year.

Always confirm the current dates and rules on GOV.UK, as they can change.

Do I count as an employee of the platform?

When you take jobs through a marketplace and set your own prices, you are normally treated as providing your own service rather than being employed. Your tax and National Insurance position depends on your individual circumstances, so use GOV.UK or an accountant if you are unsure.

Frequently asked questions

Do I pay tax on money I earn through Pluggerzz?

You may owe tax on your total trading income, depending on how much you earn. Pluggerzz does not deduct income tax from your payouts, so keeping records and declaring your income is your responsibility.

Can I earn from more than one source and still use the allowance?

The £1,000 limit applies to your combined gross trading income across all of your gigs in the tax year, not to each one separately. Add up everything before you decide whether you are under the limit.

When is the Self Assessment deadline?

Check the current dates on GOV.UK. Register as soon as you know your trading income will go over £1,000 in a tax year.

Thinking about getting started? Read how to earn extra money with your skills and what to charge, or see how earning on Pluggerzz works.

Source: GOV.UK: tax-free allowances on property and trading income, checked October 2026. This is general information, not tax advice.