£2,600 of side income with £340 of costs: register by 5 October, take the allowance, save £660
Do I Need to Register Checker
The £1,000 trading allowance tests turnover, not profit. One pass says whether you must register, by when, and which deduction wins this year.
Do I Need to Register Checker
The £1,000 trading allowance, the 5 October deadline and the platform reports, turned into one answer for your side income.
What changed in the background
Platforms now report seller and creator income to HMRC every 31 January, with a copy to you. The question is no longer whether HMRC finds out; it is whether the report matches a return.
At or under £1,000 of GROSS income the trading allowance covers it in full and registration is usually unnecessary. The test is turnover, not profit: £1,100 of sales with £900 of costs still crosses it.
Above the line, register by 5 October after the tax year ends, then choose per year: deduct the £1,000 allowance or actual expenses, whichever is larger. The demo side hustle saves £660 by taking the allowance.
Take the workbook
The decision table and the allowance-against-expenses choice at every level, in Excel.
Download the workbookFAQs
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We provide bookkeeping, VAT returns, payroll, tax filings, annual accounts, and advisory services — tailored to freelancers, SMEs, and ecommerce businesses.
Yes. Every client works with a named accountant who knows your business inside out. You’ll never deal with call centres — just direct, personal support.
We’re certified partners with Xero and QuickBooks. Our digital-first approach means you’ll always have real-time access to your financial data.
We offer fixed monthly packages with no hidden fees. Pricing depends on your business size and the level of support you need — but you’ll always know exactly what you’re paying for.
Absolutely. We handle VAT, corporation tax, self-assessments, and payroll tax. We also manage HMRC correspondence on your behalf to ensure you never miss a deadline.
No. While many of our clients are London-based, we also support businesses across the UK and ecommerce sellers worldwide through our cloud-based systems.
RESOURCES
Fresh takes on business and accounting.
Trading profit is split on a time basis. Interest, rent, gains, donations and dividends each follow their own rule, and mixing them up misstates both accounting periods.
A long period of account needs two separate capital allowances computations, and since April 2026 they are not even calculated at the same writing down rate.
Company law allows accounts to run for 18 months; corporation tax never allows an accounting period longer than 12. Here is how the split is drawn.
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