Selling Handmade Crafts in the UK: Tax, Product Safety and Labelling
If you make crafts to sell for a profit in the UK, HMRC is likely to see you as trading. The first £1,000 of gross trading income each tax year is covered by the trading allowance; above that, you normally need to register for Self Assessment by 5 October after the end of the tax year. Whatever you earn, the things you sell must be safe and properly labelled, with extra rules for toys and candles. This guide is general information, not tax or legal advice: check every figure on GOV.UK and speak to an accountant or your local Trading Standards service if you are unsure.
Are you trading or just selling?
GOV.UK explains that if you buy or make goods to sell at a profit, you are likely to be trading and will have to pay tax on your profits. Its working for yourself guidance lists signs of trading, including making items to sell for profit and selling items regularly online, at car boot sales or through adverts.
Clearing out personal possessions is different. According to HMRC's guidance on selling goods or services on a digital platform, you are unlikely to pay tax if you sell personal items from your home, such as the contents of a loft or garage.
The £1,000 trading allowance and registering
The trading allowance lets you receive up to £1,000 of trading income a year without telling HMRC, as set out in the GOV.UK page on tax-free allowances on property and trading income. There are exceptions, for example income from a partnership, so read the page in full.
| Your gross trading income in a tax year | What GOV.UK says |
|---|---|
| £1,000 or less | You usually do not need to tell HMRC, unless an exception applies. |
| More than £1,000 | Register for Self Assessment. The deadline is 5 October in the following tax year. |
| More than £1,000, using the allowance | You can deduct up to £1,000 from your income instead of claiming actual expenses, but not both. |
Points that catch makers out
- It is income, not profit. The £1,000 is measured on what customers pay you, before you take off the cost of fabric, yarn, postage or fees.
- It covers all your trading combined. Sales on several platforms, at craft fairs and through social media all count towards the same figure.
- The tax year runs from 6 April to 5 April.
- Keep records even if you stay under the allowance: invoices, a simple spreadsheet, bank statements and emails all help.
Platform reporting
Online marketplaces now share seller information with HMRC. They do not report you if you make fewer than 30 sales of goods in a calendar year or receive less than €2,000 (about £1,700) for those sales. GOV.UK is clear that being reported does not automatically mean you owe tax.
Announced changes
In March 2025 the government announced that the Self Assessment reporting threshold for trading income will rise from £1,000 to £3,000 gross within this parliament, with a new online service for people who may still owe tax. This changes how you report, not whether tax is due. Until HMRC confirms the change is live, follow the current rules.
Product safety: your duties as a maker
In Great Britain, the General Product Safety Regulations 2005 require consumer products to be safe in normal or reasonably foreseeable use. When you make and sell your own items, you are the producer. GOV.UK's product safety advice for businesses summarises what producers must do:
- reduce the risks your product could present;
- keep records and technical documentation;
- label the product appropriately and give instructions for use.
Trading Standards guidance adds that producers should mark their name and address and a product reference or batch, give clear warnings, keep a record of safety complaints, and notify their local Trading Standards service if they discover a product is unsafe.
Northern Ireland follows different rules: the EU General Product Safety Regulation (EU) 2023/988 has applied there since 13 December 2024. The Product Regulation and Metrology Act 2025 also gives the government powers to update GB product safety law, so check GOV.UK for changes before each selling season.
Labelling basics
- Who made it: your business name and a contact address on the item or packaging.
- Traceability: a product code or batch reference so you can identify affected items if something goes wrong.
- Warnings and care: clear, legible and durable instructions, such as washing advice or "keep away from heat".
- Textiles: clothing, bags and other textile products generally need a fibre composition label in English, for example "cotton 80%, polyester 20%", and the fibre content should also appear in online listings. Toys are among the products that do not need a fibre content indication.
Plain swing tags, labels and packaging from gift wrap and party and papercraft can carry this information neatly.
Extra rules for toys and candles
| Product | Main rules | What it means in practice |
|---|---|---|
| Toys (for play by children under 14) | Toys (Safety) Regulations 2011 | Safety assessment, technical file, declaration of conformity, UKCA or CE mark, age warnings, your name, address and a batch or type number |
| Candles | General product safety, GB CLP, designated standards such as BS EN 15494 (safety labels) | Fire safety labelling, plus hazard and allergy information for many fragranced products |
Toys
Soft toys, rattles, dolls and children's craft kits are toys, and a handmade toy sold regularly must meet the same rules as a factory-made one. GOV.UK guidance says people who make toys only occasionally to donate to charity are likely to be exempt, but regular sellers are not. Small parts, long cords, button eyes and fillings all need careful assessment, especially for children under 36 months. Read our guide to safe crafting with children to see the warnings parents look for.
Candles
The Trading Standards Business Companion guide to candles explains that fragrances classed as sensitisers must be declared when present at 0.1% or more, with wording such as "Contains [name]. May produce an allergic reaction." Fire safety labels follow BS EN 15494, and the guide confirms these duties apply to small home-based makers as they do to larger firms. Ask your fragrance supplier for the safety data sheet before you design labels.
Other categories, including cosmetics such as soap, food, and anything electrical, have their own regimes. Check GOV.UK before you add them to your range.
Practical checklist
- Track gross sales across every platform and fair from 6 April each year.
- Over £1,000? Register for Self Assessment by 5 October after the tax year ends.
- Choose the trading allowance or actual expenses, not both.
- Keep receipts, invoices and bank records.
- Label every item with your name, address and a batch or product code.
- Add fibre content to textiles and their listings.
- Toys and candles: read the specific rules before your first sale.
- Recheck GOV.UK each year, and take professional advice if unsure.
When you are stocking up for a new range, our craft supplies department is a good place to start.
Frequently asked questions
How much can I earn from selling crafts before telling HMRC?
Under the trading allowance you can receive up to £1,000 of gross trading income in a tax year without telling HMRC, unless an exception applies. Check the current rules on GOV.UK.
When do I need to register as self-employed for my craft sales?
If your gross trading income is more than £1,000 in a tax year, you need to register for Self Assessment. The deadline is 5 October in the following tax year.
Is the £1,000 trading allowance based on profit?
No. It is based on gross income, meaning what customers pay you before costs such as materials, postage and fees, and it covers all your trading combined.
Do online marketplaces report my sales to HMRC?
Platforms share seller information with HMRC unless you make fewer than 30 sales of goods in a calendar year and receive less than €2,000 (about £1,700). Being reported does not automatically mean you owe tax.
Do handmade toys and candles have extra rules?
Yes. Toys must meet the Toys (Safety) Regulations 2011, including a UKCA or CE mark and age warnings, while candles need fire safety labels and allergy information for certain fragrances. This is not legal advice, so check GOV.UK or Trading Standards.