Market Trader & Craft Seller

From farmers market to craft fair — your UK tax guide for market trading.

Allowable Expenses

• Pitch & Stall Fees — Weekly or event-based pitch rental fees at markets, fairs, or car boot sales.
• Cost of Goods Sold — Raw materials, wholesale stock, or handmade craft materials purchased to sell.
• Display & Equipment — Market stall, display shelving, tablecloths, signage, and pricing tools.
• Vehicle & Travel Costs — Van or car mileage to markets, fuel, and parking — keep a log of each market attended.
• Packaging — Bags, boxes, tissue paper, and branded packaging for sold items.
• Card Machine Fees — SumUp, iZettle (Zettle), or Square card reader transaction fees on card payments.

Tax Tips

• Keep a daily till or cash record — HMRC expects cash-based businesses to have contemporaneous records of all sales.
• If your gross annual turnover exceeds £1,000, you must register and file Self Assessment — the £1,000 Trading Allowance only covers income below this.
• Handmade sellers can deduct all materials used in production — thread, fabric, clay, resin, and other craft supplies are cost of goods.
• Market trading across county and country boundaries does not affect your UK tax obligations — all income must be declared.

Frequently Asked Questions

Do I need to keep a daily cash record?

Yes. HMRC expects contemporaneous records of all cash sales. A simple daily till record, whether written or digital, showing cash in and out is essential. Records reconstructed after the fact are less reliable and more likely to be challenged.

What is the £1,000 Trading Allowance?

The Trading Allowance lets individuals earn up to £1,000 per year from self-employment without paying income tax or National Insurance on it. Above this threshold, you must register with HMRC and file Self Assessment. For most market traders, income will exceed £1,000.

Are pitch fees and stall costs deductible?

Yes. Pitch fees are your primary operating cost and fully deductible. Market licence fees, stall hire costs, and event participation fees are all allowable expenses.

Do card machine transaction fees reduce my taxable income?

Yes. Transaction fees charged by SumUp, Square, iZettle (Zettle), or PayPal Here on each card payment are a deductible cost of doing business. Review your monthly processor statement and include the total fees in your accounts.