People may need to contact HMRC
HM Revenue and Customs (HMRC) has said some people will need to get in touch, and may be hit with a tax bill. HMRC has launched a new “Help for Hustles” campaign to alert people that money made from crafting, running seasonal market stalls, or upcycling furniture for sale may count as taxable income.
The taxman is urging anyone making extra cash from festive activities to check whether they need to declare it – warning that failing to do so could leave them with an unexpected bill later. Under current rules, anyone earning more than £1,000 a year from self-employed work – including online sales – must register with HMRC and complete a Self Assessment tax return. The deadline for reporting income from the 2024–25 tax year is January 31, 2026.
The £1,000 allowance applies to all trading activity combined, meaning that someone earning £600 from craft sales and £500 from social media content creation would need to register.
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.”
The campaign highlights a key distinction between selling unwanted personal items – which usually isn’t taxable – and creating or buying goods specifically to sell for profit, which is.
Graham Wilson OBE, Deputy Chief Executive of the National Association of British Market Authorities, said: “Markets are an important part of Christmas celebrations. 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.”
HMRC’s research suggests around one in ten people in the UK take part in the “hidden economy”, often unaware that their side hustle income is taxable. Online platforms such as eBay, Vinted and Etsy are also required to share information with HMRC about high-volume sellers – those making 30 or more sales a year and earning over about £1,700.
People unsure whether they need to declare income can use HMRC’s free online checker on GOV.UK, which explains when side hustle earnings cross the tax threshold. The “Help for Hustles” campaign also provides guidance for people selling items, offering services, or creating digital content, as well as advice on filing returns and setting up payment plans if needed.