Do Teenagers Pay Tax on Money from Odd Jobs?

For almost every teenager the answer is no, not yet. Tax in the UK does not depend on your age, it depends on how much you earn and how you earn it, and the amounts teenagers usually make from part-time jobs and local work sit well below the levels where tax starts. Here is how it works.

Last reviewed November 2026 for the 2026/27 tax year. This is general information, not tax advice, so check with HMRC or an accountant for your own situation.

The personal allowance

Everyone in the UK, whatever their age, can earn up to £12,570 in the 2026/27 tax year before paying any income tax. That is the personal allowance. If your total income from all your jobs is below it, you pay no income tax.

Money from your own jobs: the trading allowance

If you earn money by working for yourself, such as washing cars, walking dogs or tutoring, that counts as self-employed or trading income. The first £1,000 of it each tax year is covered by the trading allowance, which means:

If your total income from your own jobs is £1,000 or less in the tax year, you do not need to tell HMRC or pay any tax on it.
If it is more than £1,000, you need to register for Self Assessment and file a tax return, even if you end up owing no tax because you are still under the personal allowance.

The tax year runs from 6 April to 5 April. The government announced in the Autumn 2026 Budget that the trading allowance will rise to £3,000 from 6 April 2027, so check the current figure on GOV.UK if you are reading this after April 2027.

Money from an employer

If you work for an employer, such as a shop or café, your pay may go through PAYE. If you earn below the personal allowance across the year, you should not pay income tax, and if any is taken by mistake you can get it back.

National Insurance

Under 16: you do not pay National Insurance.
16 and over, employed: you pay National Insurance only on earnings above the threshold, which is equivalent to £12,570 a year, so most part-time teenage workers pay none.
16 and over, self-employed: National Insurance is only due on profits above £12,570 a year.

Do you need a National Insurance number?

You are usually sent your National Insurance number automatically shortly before you turn 16. Employers will ask for it, so keep the letter somewhere safe.

Keep simple records

Even if you owe nothing, keep a note of what you earn, from whom and when. A simple list on your phone is enough, and it makes life much easier if you ever go over the £1,000 trading allowance.

Examples

A 14 year old earning £600 a year from car washing and dog walking: no tax, nothing to report.
A 16 year old earning £3,000 a year from a Saturday job: no income tax and no National Insurance, as they are under both thresholds.
A 17 year old earning £1,500 from tutoring and gardening: no tax to pay, but they need to register for Self Assessment because their trading income is over £1,000, unless the allowance has risen by then.

Sources

Start earning

KidsHustle keeps a record of every job you complete and every payment, which makes keeping track of your income simple. Download KidsHustle, or read minimum wage for 16 and 17 year olds.