Check tax rules for festive income
People in Telford who are making money from Christmas crafts, seasonal market stalls, or selling other festive items are being urged to check if they need to tell HMRC about their earnings.
Side hustlers selling festive items need to tell HM Revenue and Customs (HMRC) online if their earnings exceed £1,000 a year.
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 the £1,000 trading allowance.
The guidance from the campaign explains the important difference 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. They must then file their return and pay any tax due by 31 January 2026.
This £1,000 threshold 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.
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.
