Christmas crafters urged to check tax rules
Source: gov.uk (2025-11-12)

Side hustlers selling festive items need to tell HM Revenue and Customs (HMRC) online if earnings exceed £1,000 a year.

- HMRC’s Help for Hustles campaign supports people earning extra income during festive season to understand tax obligations.
- Online checker tool can clarify if and when side hustlers need to report their additional income.
People making money from Christmas crafts, seasonal market stalls, or selling festive items are being urged to check if they need to tell HMRC about their earnings.

As the festive season approaches, HMRC’s Help for Hustles campaign (https://taxhelpforhustles.campaign.gov.uk/?&utm_source=press_release&utm_medium=referral&utm_campaign=sidehustles) is reminding anyone earning extra income from activities like making Christmas decorations, upcycling furniture for seasonal sales, or running market stalls, that they will need to tell HMRC if they earn more than £1,000.

The campaign’s guidance explains the important distinction between simply decluttering homes by selling unwanted personal belongings – which doesn’t usually require reporting to HMRC – and trading activities like making items to sell for profit, which may be taxable.

Anyone who earned more than £1,000 from side hustles in the 2024 to 2025 tax year will need to register for Self Assessment as a sole trader, file their return and pay any tax due by 31 January 2026. This £1,000 threshold applies to all trading activities combined – so someone earning £600 from craft sales and £500 from content creation would need to register as their total exceeds £1,000.

Visit GOV.UK to file a Self Assessment tax return (https://www.gov.uk/log-in-file-self-assessment-tax-return) online for the 2024 to 2025 tax year and pay any tax owed.

Kevin Hubbard, HMRC’s Director of Individuals & Small Business Compliance, said:

Whether you’re making handmade Christmas decorations, selling upcycled furniture, or running a seasonal market stall, it’s important to understand when your festive side hustle becomes taxable trading.

Nobody wants an unexpected tax bill, so anyone earning more than £1,000 from their side hustle should tell HMRC. Our Help for Hustles campaign (https://taxhelpforhustles.campaign.gov.uk/?&utm_source=press_release&utm_medium=referral&utm_campaign=sidehustles) provides clear, straightforward guidance to help people get their tax right.

Graham Wilson OBE, National Association of British Markets’ Deputy Chief Executive, said:

Markets are an important part of Christmas celebrations and every year, town centres around the country witness thousands of traders enriching the festive atmosphere.

As the national organisation for market operators, we want to encourage all traders, particularly those who are trading for the first time, to be clear about their obligations for tax arising from their earnings and we welcome the guidance and support provided by HMRC on this important issue.

People can use a free online checker on GOV.UK (https://www.gov.uk/check-additional-income-tax) to find out if they need to tell HMRC about additional income. Guidance is also available on the Help for hustles campaign page, explaining the different types of side hustles, including selling items, providing services and creating content.

Further information

According to insight commissioned by HMRC and published in 2023, one in 10 people in the UK operate in the hidden economy with 65% of these individuals most likely operating side hustles and largely unaware that they should be registered for tax.

Online platforms must now share information with HMRC about their sellers who make 30 or more sales and receive over approximately £1,700 annually. More information can be found in our press release (https://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/no-tax-changes-for-online-sellers-3357782) issued in December 2024.

Campaign resources to help promote tax guidance for side hustlers are available on the HMRC Frontify page (https://hmrc.frontify.com/d/36jEjX5XumCQ/hmrc-campaign-resources#/side-hustles/about-the-campaign-1). These contain social media assets, key messages and other materials to help raise awareness of the campaign.

The ‘Help for Hustles’ campaign supports people earning extra income through side hustles to understand their tax obligations. The campaign aims to help side hustlers get their tax right and avoid unexpected tax bills by providing clear, straightforward guidance on when they need to tell HMRC about additional income. The campaign educates people about the £1,000 tax-free threshold and provides easy-to-use tools to check if they need to register for Self Assessment.

There is further guidance (https://www.gov.uk/government/collections/get-help-filling-in-your-self-assessment-tax-return) and information about Self Assessment (https://www.gov.uk/browse/tax/self-assessment) on GOV.UK, plus a full list of who needs to complete a tax return (https://www.gov.uk/self-assessment-tax-returns) and a wide range of help and support (https://www.gov.uk/guidance/help-and-support-for-self-assessment) is also available including:
- guidance to help you understand and fill in your Self Assessment tax return (https://www.gov.uk/self-assessment-tax-returns/sending-return)
- help with your online account (https://www.gov.uk/log-in-file-self-assessment-tax-return) if you’re filing digitally
- support if you need extra help due to health conditions or personal circumstances (https://www.gov.uk/get-help-hmrc-extra-support)
- information on appointing someone to help you (https://www.gov.uk/appoint-tax-agent), such as an accountant, friend or relative
- advice if you’re having difficulty paying your tax bill (https://www.gov.uk/difficulties-paying-hmrc), including Time to Pay arrangements