As Christmas markets take place across the UK, HMRC is urging anyone selling handmade decorations, cards or crafts to check whether their seasonal earnings push them over the £1,000 trading allowance.
For the 2024–25 tax year, anyone whose combined side-hustle income exceeds £1,000 must register for self assessment as a sole trader, complete a tax return and settle any tax owed by 31 January 2026.
HMRC has highlighted the line between clearing out personal items and running a taxable business venture. The department noted the 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”.
The £1,000 limit applies across all trading income. This means, for example, someone who makes £600 selling crafts and £500 from online content or sponsored posts must register, as their total income is above the threshold.
The warning forms part of HMRC’s Help for Hustles initiative, which includes guidance, practical tips and a calculator to help individuals work out any tax they may owe.
On its hustles portal, HMRC explains: “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 aware of increased reporting from digital platforms. Sites such as eBay, Vinted and Facebook Marketplace are required to provide transaction data to HMRC. According to HMRC, individual users who complete 30 or more sales and receive “over approximately £1,700 annually” should pay close attention to their tax position.
Kevin Hubbard, HMRC’s 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.”
According to Local Government Association (LGA) data, visitors spent £500m at Christmas markets last year, highlighting how significant festive trading has become.
To help taxpayers work out whether they need to notify HMRC of their additional income, a simple online checker is available, along with further guidance on the Help for Hustles campaign site.
