HMRC are urging 'Christmas crafters' who earn income from selling festive items to check if they need to declare their earnings. Side hustlers who earn seasonal income during the festive period may need to declare earnings if they exceed £1,000.
Individuals who are making an income from activities such as selling goods at Christmas markets, upcycling furniture for seasonal sales or making and selling Christmas decorations will need to determine if the income raised from sales is reportable to HMRC.
HMRC are reminding everyone of the Help for Hustles campaign, which is aimed at helping individuals determine between activities which do not require reporting to HMRC, such as simply decluttering homes by selling unwanted personal belongings, and those which may be deemed to be trading, like making items to sell for profit.
The campaign is designed to:
- Provide support for people who are earning income through side hustles.
- Assist side hustlers in getting their reporting obligations right.
- Educate people about the £1,000 trading allowance.
Christmas provides a time for people to earn extra income, particularly from town centre Christmas markets and online marketplaces. HMRC want to encourage first-time traders to be clear about their reporting obligations.
Sellers who earned above £1,000 in 2024-25 from combined trades will need to:
- Register for Self Assessment
- Pay any tax liability by 31 January 2026.
For those trading for the first time during the 2025 festive period, any tax liability will become due in January 2027.
Useful guides on this topic
Side-Hustles & Tax: At a glance
Do I need to pay tax on my side-hustle income? Is a side-hustle taxable? Is there a new side-hustle tax? Do I need to register for tax when I sell on eBay, Vinted or Etsy, etc?
Online sellers & tax
What are the tax implications of being an online seller? When does a hobby become a business? What is a side hustle? What expenses can online sellers claim for tax purposes? Are there special rules for taxing income? What are the VAT rules for online sellers?
Badges of Trade: Are you trading or not?
Are you trading, running a business or just buying and selling investments? Is your 'side-hustle' taxable? The 'Badges of Trade' are a set of indicators built over time by the courts to decide when an activity is a trading or investment activity.
Failure to notify chargeability to tax
What is the failure to notify chargeability to tax? What happens if you fail to notify HMRC about your taxes? What penalties apply for failing to notify HMRC that you have a tax liability?
Allowances: Trading and Property
What are the trading and property allowances? Who can claim them? What are the restrictions?
External links
Press release: Christmas crafters urged to check tax rules