A growing number of voices in the business community are urging Chancellor Rachel Reeves to relax tax rules for side-income earners, something they claim could unlock wider economic growth. Online platforms including eBay, Vinted, Depop and Etsy have jointly called for the current £1,000 (approximately $1,250) trading allowance to be tripled. They argue this change would reflect current economic realities and provide a platform for small-scale entrepreneurs to flourish.
The trading allowance lets people earn up to £1,000 tax-free on side work in addition to their main income. Once that threshold is passed, they are required to register for self-assessment and pay tax on additional earnings. Inflation and increased living costs have steadily reduced the value of this allowance since it was introduced.
