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Christmas crafters urged to check tax rules

ended 12. November 2025

People making money from Christmas crafts, seasonal market stalls, or selling festive items are being urged to check if they need to tell HMRC about their earnings, the Government has warned.

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 £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. This £1,000 threshold applies to all trading activities combined – so someone earning £600 from craft sales and £500 from content creation would need to register as their total exceeds £1,000.

  • Is this known? Or are many unwittingly at risk of a tax bill?
  • What advice do you have for people this Christmas who are selling stuff?
  • How important is it to contact HMRC if you are over the threshold?

Responses asap please.

3 responses from the Newspage community

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Editor
Scott Gallacher
Director at Rowley Turton
Whilst many may feel aggrieved that their hobby is being taxed, HMRC’s rules — and the £1,000 de minimis limit — are actually quite reasonable. Whether you’re making £500 a month online or earning that by working nights at your local pub, you’re generally going to have to pay some tax.

What’s important is that people understand the distinction between selling personal items and trading for profit. Clearing out your loft by selling items online is fine, but if you're trading, or making and selling things with the intention of earning money, you need to keep records and be aware of the £1,000 threshold.

My only concern is whether the Chancellor will ever uprate that £1,000 allowance in line with inflation, or if it will quietly be eroded in real terms — potentially catching more and more casual sellers over time.
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Chloe Mount
Director at Tunstall Accounting
Many people see their festive side projects as a harmless way to make a bit of extra money over Christmas, without realising that HMRC’s £1,000 Trading Allowance is applicable.

If you’re simply selling unwanted household items, such as old decorations, gifts, or clothes, that’s different and wouldn’t normally count as trading, but if you’re creating items specifically to sell or buying stock with the intention of making a profit, HMRC will treat that as you running a business.

My advice is straightforward: if you’re selling goods you’ve made or bought to resell, even on a small scale, keep clear records of what you earn and spend. Once your total income from all side hustles exceeds £1,000 in a tax year, you must register for Self Assessment and tell HMRC.

For anyone over that threshold, it’s best to act early. Registering and filing on time will help you stay compliant and avoid unnecessary penalties or interest charges. If you’re unsure, an accountant can guide you through it.
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Patricia McGirr
Founder at Repossession Rescue Network
A £1,000 trading threshold in 2025 seems absurdly out of touch. Businesses should absolutely pay tax, but this limit hasn’t kept pace with inflation or reality. With many crafts selling for £50 or £60 a time, it won’t take many sales for people to be caught in the net. What began as a sensible measure to capture genuine side hustles risks turning into a bureaucratic tripwire for ordinary people, many of whom are simply trying to make ends meet. HMRC should focus on the real revenue gaps, not the grannies and grafters topping up their heating funds this Christmas.