With HMRC now able to access more information on ‘side hustles’, those selling items this Christmas are being urged to check their tax obligations.
Many people might be taking part in Christmas market stalls or selling festive crafts online, and should they exceed the £1,000 earnings threshold, they’ll need to notify HMRC. Or risk facing an unexpected tax bill.
Side hustle tax rules
Due to the new ‘side hustle’ tax rules, HMRC has access to a lot more information about those selling on online platforms, such as eBay, Vinted, Deliveroo and Uber.
HMRC is now able to identify the people who are earning money through these platforms and can make sure they are paying tax if they should be.
The tax body is running a Help for Hustles campaign to support people who are earning extra income and to help them understand their tax obligations.
Need help deciding between Limited or Umbrella? We are happy to help- give Sophie a call on 01442 795 100 or email sophie.lewis@dolanaccountancy.com
The guide covers five key areas:
- I’m buying or making things to sell
- I’ve got a side gig
- I work for myself doing multiple jobs
- I’m a content creator or influencer
- I rent out my property
This guidance will explain the important distinction between simply selling unwanted personal belongings and trading activities.
How do I know if I need to register for self-assessment?
If you have a trading or miscellaneous income under £1,000 (before expenses are deducted) then this won’t count as earnings that need to be reported.
If you are earning over this figure, you will need to register for self-assessment as a sole trader, file a return and pay any tax due by the 31st of 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.
To find out more about contracting, please contact Sophie on 01206 591 000 or email sophie.lewis@contractoumbrella.com.
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