HMRC is urging those making money from Christmas crafts, seasonal market stalls, or selling festive items to check if they need to report their earnings.
As the festive season approaches, the tax authority has launched a Help for Hustles campaign.
This aims to remind 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.
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.'
Internet link: HMRC press release