HMRC warns Christmas side-hustle sellers over tax on festive earnings

Contributing sentiments towards policy:

66% : This £1,000 tax-free allowance for each tax year applies to all trading activities combined.
61% : Anyone who earned more than £1,000 from side hustles in the 2024-25 tax year (6 April 2024 to 5 April 2025) will need to register for self-assessment as a sole trader and file a tax return and pay any tax due by 31 January 2026.
58% : You'll need this information to complete your tax returns properly," HMRC says.
57% : Crafters, artisans and others told to declare income if above £1,000 trading allowance in tax year This is a busy time of year for the thousands of people who earn a bit of extra income from a festive side hustle such as running a stall at a Christmas market or selling items online.
52% : Under UK law, everyone has a trading allowance of £1,000 each tax year, which means you can earn up to that much on top of your main job without paying tax.
52% : As the festive season approaches, HMRC's Help for Hustles campaign is reminding anyone earning extra income from activities such as selling handmade Christmas decorations or items that have been bought to sell on that they will need to tell the tax authorities if they earn more than this limit.
51% : Your personal allowance means you can earn £12,570 a year before you must pay any tax.
51% : "It's your responsibility to keep full and accurate records of all sales, income and business expenses - even if you use a tax agent or accountant.
50% : Also, when you come to do your tax return, you may be able to deduct some costs ("allowable expenses") from your income, which can lower your tax bill, provided these costs relate entirely to your side hustle.
49% : This Christmas's sales will fall into the 2025-26 tax year and need to be declared, and any tax on them paid, by the end of January 2027.
47% : However, just because you register for self-assessment, this does not necessarily mean you will actually owe any tax.
44% : Those who do not comply with the rules could risk being landed with an unexpected tax bill and penalties.

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