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

HMRC is warning thousands of Britons who earn extra money from festive side hustles like running a stall at Christmas markets or selling items online to check if they need to declare their earnings.

As the holiday season approaches, HM Revenue & Customs' Help for Hustles campaign is reminding those who make items to sell for profit - such as handmade decorations or vintage clothing - that they may be subject to tax. The £1,000 trading allowance per year allows you to earn extra income from a side hustle without paying tax, but if you exceed this limit, you'll need to register as a sole trader and file a tax return.

HMRC's guidance makes clear the distinction between decluttering your home by selling unwanted personal belongings - which doesn't usually need reporting - and trading activities that can be taxable. Anyone earning more than £1,000 from side hustles in the 2024-25 tax year will need to comply with these rules.

Christmas sales this year will fall into the next tax year, and you'll need to declare and pay any tax due by January 2027. However, if your total earnings - including expenses - exceed £1,000, you'll need to register for self-assessment and file a tax return.

While registering for self-assessment doesn't guarantee you'll owe tax, you may be able to deduct allowable business expenses from your income, which can lower your tax bill. HMRC's website provides more information on what constitutes an allowable expense.

The rules apply all year round and cover various ways people make money outside their main job, including selling items, providing services, and creating content. Even online content creators and influencers who earn extra cash from making videos or social media posts will need to comply with these regulations.

Importantly, if you're working out your income from creating online content, any gifts or services received in exchange for promoting products must be included as income. HMRC also emphasizes the importance of keeping accurate records of all sales, income, and business expenses - even if using a tax agent or accountant.

I don't get why we gotta make such a big deal about this . I've been selling my old clothes online for years and never had to pay any tax on it. The £1k allowance just seems like a nice cushion to have, but if you're already making decent money from your main job, what's the harm in just keeping track of your side hustle income? And honestly, who hasn't decluttered their home at some point and sold stuff they no longer needed? It feels like we're being treated like tiny entrepreneurs or something . Can't we just keep it simple?

so like i was thinking about getting into selling some handmade stuff on ebay and i didnt think i had to pay taxes on it... but now im reading this and its like whoa i need to be aware of the £1000 limit or i might get in trouble . and what if i make more than that? do i have to register as a sole trader or something? thats kinda overwhelming . also, i wasnt expecting to have to keep track of all my expenses too... seems like a lot of work just to make some extra cash . maybe ill look into using a tax agent or accountant though? that way im sure im doing it right .

I'm getting weird vibes about this tax thingy... like, what's next? Are they gonna make us report on our Netflix binge-watching habits too? For real tho, £1k is a pretty arbitrary number - can't we just pay taxes on whatever we make and not have to worry about the allowance thing? It sounds like more work for some people than others... maybe HMRC should just create a special side hustle tax calculator or something

omg u gotta keep track of ur side hustles income especially during xmas season! HMRC is being super clear that u might need to pay tax on earnings above £1k so make sure u get all ur numbers straight. and don't even think about using the £1k trading allowance as a loophole . register for self-assessment if u earn more than that & claim allowable business expenses 2 reduce ur tax bill btw, dont forget 2 report gifts or services u receive in exchange 4 promoting products online

So there's this thing with HMRC warning people who make some extra cash from side hustles during Christmas to check if they need to declare it. I think it's pretty reasonable, you know? I mean, if you're making £1,000 or more from selling stuff online or running a stall at markets, you should probably be aware of the tax implications. The thing is, a lot of people don't realize that just because they're decluttering their home and selling some old junk doesn't mean it's all good to go as a business.

It's also worth noting that registering for self-assessment isn't the end of the world. You can deduct allowable expenses from your income, which could lower your tax bill. And if you're making money online, just be aware that any free stuff or services you get in exchange for promoting products is considered taxable income. Keep those records tidy and you'll be fine!

Dude , I'm loving how HMRC is looking out for all us hustle enthusiasts ! It's so important to know that we're not just decluttering our homes, but also making some serious cash from those side gigs .

I mean, who doesn't want to sell their fave vintage sweater online or make a quick buck at the Christmas market? But seriously, it's great that they're setting clear rules and guidelines so we can stay on top of our finances . I'm all about transparency and making sure I'm not missing out on any potential tax benefits .

And let's be real, if you're already making over £1k from your side hustle, you're probably going to want to take advantage of that £1k trading allowance . But even if it's under that threshold, still keep those records straight and accurate, 'cause HMRC is onto us .

Anyway, just a heads up for all my fellow hustlers out there - make sure you're playing the tax game smartly !