Christmas crafters in Somerset are being reminded that their festive side hustles could come with a tax bill.
People are being warned that anyone earning more than £1,000 from selling handmade decorations, running seasonal market stalls, or upcycling furniture for profit must report their earnings to HMRC and may need to pay tax.
The reminder comes as part of HMRC’s Help for Hustles campaign, which highlights the difference between selling unwanted personal items - which usually is not taxable - and trading activities intended to make money.
Kevin Hubbard, HMRC’s director of individuals and 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."
Anyone who earned more than £1,000 from combined trading activities in the 2024 to 2025 tax year must register for Self Assessment as a sole trader, submit a tax return, and pay any tax owed by January 31, 2026.
This includes people who earn income from crafts, market trading, and other small business ventures.
The £1,000 threshold covers all trading income, so someone who makes £600 from craft sales and £500 from content creation would need to register, as their total exceeds the limit.
Graham Wilson OBE, National Association of British Markets’ deputy chief executive, said: "Markets are an important part of Christmas celebrations and every year, town centres around the country witness thousands of traders enriching the festive atmosphere.
"As the national organisation for market operators, we want to encourage all traders, particularly those who are trading for the first time, to be clear about their obligations for tax arising from their earnings, and we welcome the guidance and support provided by HMRC on this important issue."
HMRC has said that anyone unsure about their status can use a free online checker on the government website to determine whether they need to declare additional income.
Further guidance is available on the Help for Hustles campaign page, which explains the different types of side hustles - such as selling goods, offering services, or creating content - and when they become taxable.
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