HMRC urges festive side hustlers to stay aware of tax rules

Christmas is a busy time for people looking to earn a little extra, whether that’s selling handmade decorations at a market or listing items on Vinted.

With more people turning to side hustles, HM Revenue and Customs (HMRC) is reminding everyone to check whether they need to report their earnings.

What you need to know

Everyone in the UK has a £1,000 trading allowance each tax year.

You can earn up to this amount from casual trading or side hustles without paying tax.

If you earn more than £1,000, you must tell HMRC.

• If you earn over £1,000 from side hustles in the 2024–25 tax year (6 April 2024 to 5 April 2025), you need to register for self-assessment, file a tax return, and pay any tax due by 31 January 2026.
• Money earned this Christmas will fall into the 2025–26 tax year, with tax returns and payments due by 31 January 2027.

Registering for self-assessment doesn’t always mean you’ll owe tax. You can earn up to £12,570 a year before paying any income tax.

You can also deduct allowable expenses, such as office supplies or marketing costs,  which can reduce your tax bill.

HMRC’s ‘Help for Hustles’ campaign offers guidance for common side-hustle categories, including:

• selling goods
• providing services like tutoring or delivery driving
• creating content, such as social media posts

It’s your responsibility to report your income correctly. If you don’t, you could face unexpected tax bills or penalties.

How to check if you need to file

Use the checker tool on GOV.UK to find out if you might need to complete a tax return for the 2024-25 tax year.

If you’re new to self-assessment, you’ll have to register online to get your unique taxpayer reference (UTR).

More information for anyone with a side hustle can be found on GOV.UK.

File early

The self-assessment deadline for the 2024–25 year is 31 January 2026, but HMRC encourages anyone earning over the £1,000 threshold to file early. Getting it done sooner means:

• no last-minute stress
• more time to plan and budget
• fewer surprises later on

It might not be the most exciting part of running a side hustle, but staying organised helps everything run smoothly.