Making Christmas Crafts, Running Stalls, or Taking Side Jobs? Any Income Over £1,000 Must Be Declared!
- TBA
- Dec 31, 2025
- 4 min read
With the Christmas season, many people may have earned extra income through festive crafts, market stalls, or other seasonal side hustles.
If you are one of them, you need to confirm as soon as possible whether this income requires tax payments. HMRC has launched a 'Help for Hustles' campaign to help individuals with side income clearly understand their tax responsibilities.
This includes the most critical policy that might affect you: the £1,000 Trading Allowance.
1. Declaring excess side hustle income
Whether it is a seasonal stall, online shop orders, or occasional freelance work, as long as it falls under 'trading income', it may involve tax obligations.
If your side hustle income exceeds £1,000 in any tax year, you generally need to register for Self Assessment, file a tax return by the end of January of the following year, and pay any tax due.
For example, in the 2024/25 tax year, if your side income exceeds £1,000, you may need to register and submit a Self Assessment by 31 January 2026.
HMRC also specifically points out that the £1,000 allowance is based on gross income (total sales), not profit. It applies to all types of trading activities combined. Therefore, income from handicraft sales, market stalls, online selling, and content creation must be calculated together.
For example, if an individual earns £600 selling handmade goods and another £800 through content creation, their total income is £1,400. Since this exceeds the allowance, they usually need to notify HMRC and may need to file a Self Assessment tax return.
2. Distinguishing taxable trading from selling personal items
Of course, if you are simply selling a few old items that you no longer need, you generally do not need to pay tax.
However, the following are considered obvious commercial activities and may require tax payments, even if the scale is small:
Making Christmas crafts specifically to sell.
Refurbishing old furniture to resell for a profit.
Operating a seasonal market stall.
3. How to file a Self Assessment
Income under £1,000: If your income within a tax year (6 April to 5 April of the following year) is below £1,000 and there are no other reasons to declare (such as rental income), you do not need to register for Self Assessment.
Income over £1,000: You must register with HMRC by 5 October following the end of that tax year. (e.g. if you exceed the threshold in 2025/26, register by 5 October 2026).
Choosing your deduction method:
Once in the Self Assessment system, you have two options:
Use the £1,000 Trading Allowance: Pay tax on the portion exceeding £1,000 (you cannot claim expenses).
Declare actual expenses: Do not use the allowance; instead, deduct actual business costs.
You cannot use both methods simultaneously. It is usually recommended to choose the option that results in lower taxable profit.
If you register by 5 October 2025, you must pay any tax owed by 31 January 2026, regardless of whether you file via paper or online.
4. Information sharing thresholds for online sellers
Starting from January 2025, platforms like eBay, Vinted, Etsy, and Fiverr will begin reporting seller income information to HMRC.
If you sell through an online platform and meet either of the following criteria within a year, the platform must report your information:
Completed 30 or more sales
Earned approximately £1,700 (roughly €2,000)
Most online sellers will start receiving relevant reports starting in January 2026.
5. Insights from TB Accountants
Sometimes, even if your income is less than £1,000, registering and declaring can be more cost-effective.
Claiming losses: If your business costs exceed £1,000, registering allows you to declare business expenses (software, equipment, travel, phone bills, etc.) and potentially record a loss.
Proof of income: If you plan to expand your business or need proof of income (e.g. for a mortgage application), being registered is beneficial.
Property allowance: If you rent out part of your home, a parking space, or other space, this falls under property income and has a separate £1,000 Property Allowance. If you have both trading income and property income from different sources, you may be able to use both allowances simultaneously.
Record keeping: Even if your income is below the £1,000 threshold and you do not need to file, it is highly recommended to keep basic records, including:
Explanation of income sources.
Dates payments were received.
Amounts received.
Invoices, bank records, or screenshots (especially for app/platform sales) in case HMRC requests verification.
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