People selling homemade crafts and Christmas cards at markets this December need to keep within the £1,000 side hustle threshold, or face a demand from HMRC.
With Christmas markets springing up across the country and social media alive with offers, HMRC has warned anyone selling handmade gifts and trinkets at need to check if their earnings exceed £1,000 a year.
Anyone who earned over the £1,000 threshold from side hustles in the 2024/2025 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.
HMRC stressed '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'.
The threshold applies to all trading activities, so someone earning £600 from craft sales and £500 from online posts and sponsored blogs needs to register as the total would exceed £1,000.
This warning is part of HMRC's “Help for Hustles” campaign, which has a dedicated website with tips and advice and a tool to calculate tax liability.
On the hustles portal HMRC says 'If you're just selling unwanted personal belongings from time to time like old toys and clothes, whether it's online or in person, you don't usually need to tell HMRC, It's only if you've sold a single personal item or collection for more than £6,000 that you need to tell us.'
This year online sellers also need to be on the watch as platforms like eBay, Vinted and Facebook Marketplace, have to report data to HMRC. Individual sellers who make 30 or more sales on these sites and are paid 'over approximately £1,700 annually' in the words of HMRC need to be careful.
The HMRC director of individual 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.'
HMRC has a basic online checker tool to see if additional money from selling goods should be reported as additional income. Guidance is also available on the “Help for Hustles” campaign page.
Anyone affected by the above is welcome to contact BFN Accounts & Tax for assistance - www.bfnaccounts.com
Other Useful links
HMRC Online Checker Tool
HMRC Help For Hustles portal
Peter Nichols – Tax Director BFN Accounts & Tax