HMRC sends stark warning to UK's festive side-hustlers: pay tax on extra earnings or face penalties
The UK's army of crafters, artisans, and designers are being urged to check their tax records this holiday season, lest they risk landing themselves with an unexpected tax bill and penalties. HM Revenue and Customs (HMRC) is reminding those who earn a bit of extra income from festive side-hustles such as running a stall at Christmas markets or selling items online that they need to declare these earnings.
The rules are simple: anyone earning more than £1,000 in trading activities per tax year must register for self-assessment and file a tax return. This means that even if you earn £600 from crafting sales and £500 from posting content online, you'll need to register - as your combined income exceeds the £1,000 threshold.
However, just because you register for self-assessment doesn't mean you'll owe any tax. Your personal allowance of £12,570 a year means you can earn up to this amount without paying tax. When filing your tax return, you may be able to deduct allowable expenses from your income, which can lower your tax bill.
The key distinction is between simply decluttering your home by selling unwanted items and trading activities that make an item for profit. HMRC's guidance emphasizes the importance of distinguishing between these two scenarios.
The rules apply all year round, covering a wide range of ways people earn money outside their main job - from selling items to providing services, creating content, or upcycling second-hand furniture as a hobby with the intention of selling it for more than you paid.
For online content creators and influencers, the rules also apply. When calculating your income, you must include the value of any gifts or services received from promoting products online - these count as income.
To avoid any unexpected tax bills, it's crucial to keep proper records of all sales, income, and business expenses. HMRC stresses that even if you use a tax agent or accountant, you'll need full and accurate records to complete your tax returns properly. This means keeping invoices, receipts, and bank statements on hand.
With Christmas around the corner, make sure you're not caught out by HMRC's guidance - declare your festive side-hustle earnings today.
The UK's army of crafters, artisans, and designers are being urged to check their tax records this holiday season, lest they risk landing themselves with an unexpected tax bill and penalties. HM Revenue and Customs (HMRC) is reminding those who earn a bit of extra income from festive side-hustles such as running a stall at Christmas markets or selling items online that they need to declare these earnings.
The rules are simple: anyone earning more than £1,000 in trading activities per tax year must register for self-assessment and file a tax return. This means that even if you earn £600 from crafting sales and £500 from posting content online, you'll need to register - as your combined income exceeds the £1,000 threshold.
However, just because you register for self-assessment doesn't mean you'll owe any tax. Your personal allowance of £12,570 a year means you can earn up to this amount without paying tax. When filing your tax return, you may be able to deduct allowable expenses from your income, which can lower your tax bill.
The key distinction is between simply decluttering your home by selling unwanted items and trading activities that make an item for profit. HMRC's guidance emphasizes the importance of distinguishing between these two scenarios.
The rules apply all year round, covering a wide range of ways people earn money outside their main job - from selling items to providing services, creating content, or upcycling second-hand furniture as a hobby with the intention of selling it for more than you paid.
For online content creators and influencers, the rules also apply. When calculating your income, you must include the value of any gifts or services received from promoting products online - these count as income.
To avoid any unexpected tax bills, it's crucial to keep proper records of all sales, income, and business expenses. HMRC stresses that even if you use a tax agent or accountant, you'll need full and accurate records to complete your tax returns properly. This means keeping invoices, receipts, and bank statements on hand.
With Christmas around the corner, make sure you're not caught out by HMRC's guidance - declare your festive side-hustle earnings today.
Ugh, can't believe some ppl are tryna low-key avoid taxes by selling old stuff online 
or at markets 
. Like, come on, if you're making a profit from it, report it already! 
Don't wanna risk penalties and whatnot. And btw, if you're doing it for the 'gram 
, that counts as income too! 
So, ppl, get those records in order and file your tax return on time, aight? 
. I mean, I get it, they need to collect taxes and all that jazz, but do they have to make a big deal about it? Like, can't we just keep track of our own side hustles without having to read up on 10 pages of rules and guidelines? It's not that hard to earn £1,000 from selling stuff online or at markets – I mean, I've done it myself, no problem 
. dont wanna risk gettin a nasty bill outta the blue 
so like, even if it's just a few extra £s from selling some crafts at christmas market, gotta register and file tax return? what's next, reporting our morning coffee consumption? 
Can't these people just sort out their own finances already?! 
I mean, who hasn't heard of £1,000 threshold before? It's not like it's a secret tax code or anything... 
And what's with the emphasis on keeping records? Can't they just use some digital invoicing software to make life easier for themselves and HMRC? 
. anyway, if you earn more than £1k from those side-hustles, its pretty much a given that you gotta register for self-assessment. i mean, who doesn't love making some extra cash during the holidays, right? just make sure to keep all your receipts and stuff organized so you can deduct any business expenses on your tax return... less stress that way 
so yeah of course u gotta declare that extra cash from making things or selling online... it makes sense though, dont wanna be stuck with a big bill on xmas day 
and im not even doing any side hustles myself, just living vicariously thru others lol
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It's a bit concerning that the UK government is bringing attention to this issue, as it might be seen as another way of encouraging people to engage in entrepreneurial activities, rather than just making extra money on the side. I mean, who wouldn't want to sell their unwanted items or create something from scratch? 
However, HMRC's strict rules do make sense - after all, tax evasion is a serious offense that can lead to severe penalties.
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Not exactly the most approachable way to communicate with the general public.
You know, running a stall at Christmas markets or selling stuff online isn't rocket science!