In this week’s Enews, there is a festive warning over Christmas side hustles from HMRC. There is also news on protection for bank deposits and the latest news on UK inflation to update you on.
Christmas crafters urged to check tax rules
HMRC is urging those making money from Christmas crafts, seasonal market stalls, or selling festive items to check if they need to report their earnings.
As the festive season approaches, the tax authority has launched a Help for Hustles campaign.
This aims to remind anyone earning extra income from activities like making Christmas decorations, upcycling furniture for seasonal sales, or running market stalls, that they will need to tell HMRC if they earn more than £1,000.
The campaign’s guidance explains the important distinction between simply decluttering homes by selling unwanted personal belongings – which doesn’t usually require reporting to HMRC – and trading activities like making items to sell for profit, which may be taxable.
Anyone who earned more than £1,000 from side hustles in the 2024 to 2025 tax year will need to register for self assessment as a sole trader, file their return and pay any tax due by 31 January 2026.
Kevin Hubbard, HMRC’s Director of Individuals & Small Business Compliance, said:
‘Whether you’re making handmade Christmas decorations, selling upcycled furniture, or running a seasonal market stall, it’s important to understand when your festive side hustle becomes taxable trading.
‘Nobody wants an unexpected tax bill, so anyone earning more than £1,000 from their side hustle should tell HMRC. Our Help for Hustles campaign provides clear, straightforward guidance to help people get their tax right.’
Internet link: HMRC press release
Bank deposit protection limit to be increased to £120,000
UK bank customers will benefit from an increase to the maximum amount they would be reimbursed for if their bank were to fail from 1 December, the Prudential Regulation Authority (PRA) has confirmed.
From December, the deposit protection limit, which applies to the Financial Services Compensation Scheme, will protect up to £120,000 of a depositor’s money should their bank, building society or credit union fail.
This increases the limit from the current £85,000 which was set in 2017. It is also more than the previous PRA proposal of £110,000, which the regulator has changed due to consultation feedback and the latest inflation data.
This increase in the deposit protection limit is the latest in a series of regulatory thresholds to be updated by the PRA.
Sam Woods, Deputy Governor for Prudential Regulation at the Bank of England and CEO of the PRA said:
‘This change will help maintain the public’s confidence in the safety of their money. It means that depositors will be protected up to £120,000 should their bank, building society or credit union fail. Public confidence supports the strength of our financial system.’
Internet link: Bank of England website
UK inflation rate falls for first time since March
The UK inflation rate fell to 3.6% in the year to October, according to the latest data from the Office for National Statistics (ONS).
October’s decline was led by a smaller rise in gas and electricity prices compared with a year ago as well as a drop in hotel prices, the ONS said.
Core inflation, which excludes energy and food, was 3.4% in October, down from 3.5% in September. However, food and drink inflation rose to 4.9% in October, up from 4.5% in September.
This is the first time the rate has fallen since March and the lowest the rate has been since the year to June. But it remains above the Bank of England’s 2% target.
Ben Jones, Lead Economist at the Confederation of British Industry, said:
‘Inflation eased in October, broadly in line with the Bank of England’s expectations.
‘With Q3 GDP figures confirming a weak growth backdrop, and the labour market continuing to soften, today’s figures add to the evidence that price pressures are gradually subsiding.
‘Combined with the likelihood of further fiscal consolidation measures at the Budget, the data should give the Bank’s Monetary Policy Committee confidence that inflation risks are diminishing.
‘If this trend continues, the case for an interest rate cut in December looks increasingly compelling.’
Internet link: ONS website CBI website
