Christmas crafters urged to check tax rules 

  • 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 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 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 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 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. 

Love your side hustle? Make it tax official this Valentine’s

  • HM Revenue and Customs’ (HMRC) ‘Help for Hustles’ campaign launched to support people earning extra income to understand any tax obligations
  • A new easy-to-use guide is available on GOV.UK

As Valentine’s Day approaches, anyone who has turned the love for their hobby into a side hustle is being encouraged to ‘put a ring on it’ and make it official.

Whether it’s making extra income from activities such as online content creation, dog walking, or making handcrafted items to sell, HMRC has launched a new Help for Hustles campaign to assist people in understanding if they need to declare their earnings.

Anyone generating more than £1,000 from their side hustle should check their tax obligations using HMRC’s new easy-to-use guide at taxhelpforhustles.campaign.gov.uk.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said: “We know many people are turning their hobbies and interests into successful businesses and we’re here to help them understand their tax obligations.

“Nobody wants an unexpected tax bill, so anyone with a side hustle should check HMRC’s straightforward guide and make sure they’re getting their tax right.”

The new guide covers five key areas to help people understand any tax obligations:

  1. I’m buying or making things to sell
  2. I’ve got a side gig
  3. I work for myself doing multiple jobs
  4. I’m a content creator or influencer
  5. I rent out my property

If someone has earned more than £1,000 from their side hustle in a tax year, they may need to complete a Self Assessment tax return. Customers can check if they need to tell HMRC about additional income on GOV.UK.

This only applies to people who are trading or selling services. If someone is simply clearing out their unwanted items and putting them up for sale, they will not need to pay tax.

Undeclared income of more than £1,000 from side hustles form part of the hidden economy. HMRC is committed to reducing the tax gap, of which the hidden economy accounted for about £2.2 billion in 2022/23.