Questions and Answers
Do I need to pay tax on my Christmas side hustle?
I make Christmas cards and decorations every year to sell online and at craft fairs. Do I have to think about tax and tax returns?
First published 20 Nov 2025
By Helen Wood, CA 2 min read
Self-Assessment Tax Returns
The Government has reminded Christmas crafters that their festive side hustle could mean tax and reporting for them. Let’s look at exactly how that could affect you.
What are the rules?
The rules state that if you have trading income of £1,000 or more in a tax year, then you need to file a self-assessment tax return.
£1,000 is also the value of the trading allowance so if you have £1,000 or less in trading income, you will have no income tax to pay.
In March 2025 the Government announced that the self-assessment reporting threshold for trading income would go up to £3,000 but there is no date for this rule change yet, so for now if you make £1,000 you need to file that tax return. For more on this future change, see our Q&A here.
Is this a special allowance just for Christmas sales?
No, the trading allowance is not just for Christmas sales. So, if you have other side hustles throughout the year as well as a regular job, you’ll need to add together the incomes from those other side hustles to see if you have earned more than £1,000 throughout the tax year.
What about selling my old Christmas things?
Selling your old Christmas jumpers or decorations won’t usually be taxable – unless you have a very valuable Christmas gem amongst them worth £6,000 or more. See HMRC’s Help For Hustles hub for more details.
Need help completing your self-assessment tax return?
If you aren’t sure whether you need to complete a tax return for the first time and don’t know where to start, we can help. We offer a great range of tax advice for business owners and are well-versed in assisting with tax returns. For a free initial consultation, call us today on 01480 592 002 or drop us a line using our online enquiry form.
First published 20 Nov 2025
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Helen Wood, CA
Helen is a qualified chartered accountant (CA) and joined TaxAssist in 2025 following three years as a freelance content writer for clients in the tax and accounting publishing sector. Prior to this, She spent 17 years at Big Four and Top 10 accountancy firms. Helen writes clear and helpful articles on tax and accounting for businesses and individuals.
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