Crafters, artisans and others who earn extra income from festive side hustles, such as running a stall at a Christmas market or selling items online, are being reminded by HM Revenue and Customs (HMRC) to check if they need to declare their earnings. Under UK law, everyone has a trading allowance of £1,000 per tax year, meaning you can earn up to that amount on top of your main job without paying tax. However, if your total income from side hustles exceeds this limit, you must register for self-assessment and file a tax return.
HMRC’s Help for Hustles campaign highlights the distinction between decluttering by selling unwanted personal belongings, which usually does not need to be reported, and trading activities such as making items to sell for profit, which may be taxable. Anyone who earned more than £1,000 from side hustles in the 2024-25 tax year (6 April 2024 to 5 April 2025) must register as a sole trader, file a tax return, and pay any tax due by 31 January 2026. Christmas sales will fall into the 2025-26 tax year and need to be declared by the end of January 2027.
The £1,000 tax-free allowance applies to all trading activities combined. For example, someone earning £600 from craft sales and £500 from content creation would need to register as their total exceeds £1,000. This figure is based on income before expenses, not profit. However, registering for self-assessment does not necessarily mean you will owe tax, as your personal allowance allows you to earn £12,570 a year before paying tax. You may also deduct allowable expenses, such as office costs or website fees, from your income to lower your tax bill.
The rules cover a wide range of side hustles, including selling items (e.g., buying goods to resell, upcycling furniture, or reselling vintage clothing), providing services (e.g., dog walking, gardening, tutoring, or ride-sharing), and creating content (e.g., videos, social media posts, or podcasts). Content creators must include the value of any gifts or services received from promoting products as income. HMRC stresses the importance of keeping accurate records of all sales, income, and business expenses to complete tax returns properly.
