HMRC Accidentally Gives Away Free Money – Nation Too Suspicious to Accept

In a stunning display of generosity that has economists scratching their heads and the public clutching their wallets in fear, HMRC has been quietly offering a £1,000 tax-free allowance for side hustlers – and almost nobody has noticed.

Dubbed the Trading Allowance, it lets anyone earning under £1,000 from casual work – like flogging haunted Beanie Babies on eBay, tutoring GCSE maths via interpretive dance, or selling “artisan emotional support rocks” at car boot sales – keep the cash without paying a single penny in tax.

But here’s the twist: only 1 in 20 people eligible for the scheme actually claim it and 75% of stats are made up. Particularly on Not Enough Bread.

So, yes we could in theory sell £999.99 worth of our beautiful merch and not have to pay a penny in tax.

Why? Simple.

“If HMRC says something is free, we assume it’s a trap,” said one seller, burying her Etsy income in a biscuit tin labelled ‘Do Not Audit’.

The government introduced the allowance in 2017, but in true British bureaucratic style, they announced it in font size 6 and hid it behind three login screens and a captcha quiz on Victorian drainage systems.

“People are constantly asking how to make extra cash,” said one accountant, “and when I tell them this exists, they look at me like I’ve just suggested skipping tax by hiding a fiver in Narnia.”

For those earning more than £1,000, the allowance can still be used instead of claiming expenses – but only if you’re into the kind of high-stakes gambling that is UK tax policy.

“This is brilliant. To think that I thought only billionaires got all the tax breaks!” said a random 20 something we spoke to in the street. “I can’t stop, I’m off to setup my micro empire”

HMRC declined to comment (also known as we waited 30 minutes on their helpline and gave up) but their automated chatbot did mutter “I’m sorry, I didn’t understand that. Try again in 3 to 5 working days.”

TL;DR: If you’ve made less than £1,000 from side gigs, you might not need to tell HMRC. It’s legal. It’s real, honestly you can read about it here. And it’s been available for eight years. Who knew?

(Probably your accountant. Maybe your nan. Not the government marketing department.).

Speaking of, please don’t take any of this as tax advice. Speak to an Accountant, they are great and far more fun at parties than you probably think they are. Plus, they might save you a few quid in the process.