What the trading allowance is
From 6 April 2017, individuals can get up to £1,000 each tax year in tax-free allowances for property income and for trading income. If you have both types, you get a separate £1,000 allowance for each.
HMRC describes the trading allowance as a tax exemption of up to £1,000 a year for individuals with trading income from self-employment, casual services (helpsheet 325 has more on other taxable income), or hiring personal equipment.
Source: GOV.UK – Tax-free allowances on property and trading income (HMRC; page last updated 8 May 2019; fetched 5 November 2026).
If your survey and cashback income is £1,000 or less
GOV.UK states that if your annual gross trading income from one or more trades is £1,000 or less, you may not have to tell HMRC — with important exceptions. You must still keep records. HMRC calls this “full relief”.
You must tell HMRC if, among other cases set out on that page, you:
- cannot use the allowances; or
- must register for Self Assessment and declare the income on a tax return for other reasons listed by HMRC (for example wanting to claim certain benefits or reliefs).
“Gross income” means the total amount you would put on a tax return before allowances or expenses — whether you use cash basis or traditional accounting.
If you earn more than £1,000
If annual gross trading income is more than £1,000, you can still use the tax-free allowance instead of deducting expenses (“partial relief”). You can deduct up to £1,000, but not more than your income. You cannot use the allowance to create a loss.
If your expenses are higher than your income, HMRC notes it may be better to claim expenses instead of the allowance.
If gross income for a tax year is more than £1,000, you must register for Self Assessment by 5 October in the following tax year (per the same GOV.UK page).
Does survey / cashback / GPT income count?
HonestPayouts is not HMRC. We cannot certify how every PayPal balance is classified. In practice, many people treat regular paid-survey and similar side income as trading / miscellaneous trading income — which is why the trading allowance page is the right official starting point. Gift-card-only rewards, bank switch bonuses and one-off refer-a-friend payments can sit in grey areas; if your totals are material, ask a qualified adviser or HMRC with your own figures.
Platforms themselves often push responsibility to you. Qmee’s UK terms, for example, say users are responsible for tax liability on cash rewards and that Qmee does not determine reportability in your jurisdiction (Qmee terms, last updated February 2026).
When you cannot use the trading allowance
GOV.UK lists situations where the allowances are blocked for a tax year, including trading or property income from:
- a company you or a connected person owns or controls;
- a partnership where you or a connected person are partners;
- your employer, or the employer of your spouse or civil partner.
The trading allowance also does not apply to trading income from a partnership. Read the full GOV.UK page before assuming you qualify.
Records you should keep (even under £1,000)
HMRC says you must keep records of the income. Examples on GOV.UK include invoices, spreadsheets of receipts, emails confirming income, statements from the company that paid you, bank statements, and a diary of income per customer. Penalties can apply if records are not accurate, complete and readable for the required period.
For survey sites, a simple monthly export or screenshot of cash-out history (PayPal, bank, gift cards) plus the site name and date is usually enough to reconstruct a year — do it as you go.
Benefits, Universal Credit and other interactions
GOV.UK notes that using the trading allowance instead of actual expenses can affect calculations for tax credits, high income child benefit charge, student loan repayment and married couple’s allowance. Income for Universal Credit purposes is not affected by the allowances (same page). If you claim benefits, check the benefit rules separately.
Practical checklist for HonestPayouts readers
- Add up gross withdrawals and cash-equivalent rewards for the tax year (6 April – 5 April), not just “profit after coffee”.
- If the total is clearly under £1,000 and none of HMRC’s exceptions apply, you may not need to declare it — but keep the records anyway.
- If you are over £1,000, plan for Self Assessment and decide allowance vs expenses.
- Do not ignore large bank-switch or refer-a-friend bonuses just because they arrived in one lump; they still form part of your year’s money in.
- When unsure, use HMRC’s contact routes listed on the guidance page or a regulated adviser — this article cannot assess your case.
Honest limitations
Tax rules change. The GOV.UK page we cite was last updated 8 May 2019 when fetched on 5 November 2026; always open the live page. Nothing here is tailored to your PAYE code, benefits, or company structure. This tax guide does not depend on any affiliate offer.
See also the UK survey site ranking.
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