Table of Contents
The way we work is changing. Thanks to the high cost of living and growing job insecurity, it’s getting harder to get by on a single salary. As a result, increasing numbers of workers are choosing to supplement their income with a side hustle, which could be anything from dog walking to selling online, or renting out your spare room, your car, your driveway or even your wardrobe.
IPSE data reveals that, in 2024, 460,000 people in the UK had a side hustle – an increase of 20% compared to the previous year – and a survey from Utility Warehouse and the Centre for Economics and Business Research (Cebr) found that almost half the UK population (47%) could be earning extra income from a side hustle by the end of 2025, compared to only 10% in 2017.
If you’re tempted to start a side hustle of your own, research indicates that you could earn an additional £750 per month – and two side hustlers we spoke to are earning substantially more.
What is a side hustle?
A side hustle is a second job that you fit around your regular work. If you work full-time, this means you can focus on it during the evenings or weekends. This is different from ‘overemployment’ or ‘polygamous working’, which refers to juggling two or more full-time jobs at the same time, without telling your employers.
If you’re already working, either full- or part-time, there’s nothing to stop you starting a side hustle, provided you do it outside of your regular work hours. However, it’s wise to check your employment contract for any restrictions that prevent you from taking on extra work, particularly if your side hustle is of a type that’s in direct competition with your main job.
What is the best side hustle?
There are lots of ways to make money, both online and offline, so it helps to be guided by your existing skills, your hobbies and interests – and the amount of time and energy you can devote to it. It’s also worth considering if it’s a priority to make money quickly, perhaps because you urgently need to boost your income or want to put the money towards something specific, like a holiday or renovation project.
Selling unwanted items on resale platforms like Vinted or eBay can be a great way to quickly drum up some extra cash, and it can be surprisingly lucrative. Teacher Emma Bradley, who has more than one side hustle, says she’s made £1275 on Vinted in the last year.
She says: “I started selling my own stuff first, then thought buying to resell could be lucrative. I’m a regular charity shopper, and get my stock from charity shops and car boot sales.”
If you don’t have much spare time, but you do have a spare room, you could consider renting it out via Airbnb. Suzanne Noble, who lives in North West London, has been an active Airbnb host for the last decade. She says: “I make about £2,000 per month, which is very handy and requires very little effort on my part. Mostly it’s a simple process of changing over the sheets, vacuuming, dusting and keeping the bathroom clean.” She adds: “I’ve got about 95% occupancy all year round.”
Pet sitting and dog walking are also popular side hustles. Alternatively, you could capitalise on your marketable skills and work on a freelance basis, offering tutoring, DIY or gardening services, content creation or bookkeeping.
The benefits of a side hustle
Starting a side hustle is a low-risk way to find out if you could turn your hobby into a business, although you will probably need to invest time and effort before you make much money. Doing this gives you a great opportunity to develop and refine your skills, and it can also be a huge confidence boost, helping you to decide if you’re cut out for self-employment or becoming a fully-fledged business owner.
However, for many side hustlers, the real benefit is the opportunity to earn extra money – not to mention the sense of security that comes with an additional income stream.
As well as selling on Vinted, Emma Bradley can make up to £4,000 per month from her blog. “I’m a qualified secondary teacher and was head of department for many years, but I gave it up to be more present for my kids. I returned to teaching two years ago, but continued blogging as a side hustle. I now coach people on how to make money from their lifestyle blogs, via a monthly masterclass, blogging courses and a weekly Q&A. I’m currently in between teaching contracts, so I love the flexibility I have working my side hustles – the more time I devote to them, the more I can earn.”
For Airbnb host Suzanne Noble, renting out her spare room gave her peace of mind while starting a new business – and means she can afford to enjoy some winter sun.
She says: “My Airbnb side hustle has made a real difference to my life. When I was starting a new business, my investors were relieved that I wouldn’t be spending the money they invested on my salary. I have a portfolio career, so my income from Airbnb is hugely helpful when my other businesses are having a seasonal downturn – and it means I can go to Gran Canaria for the winter because the proceeds cover my rent there.”
Will I be taxed on my side hustle?
“A side hustle is a great way to try something new without giving up the security of a regular income, but you do need to go into it being ‘tax aware’,” says accountant Deborah Harland.
The good news is that if you’re at an early stage with your side hustle, or making a bit of cash by selling your own clothes on Vinted, you may not need to pay tax.
“Everyone in the UK is entitled to a self-employment allowance of £1,000. This means that if you make sales of less than £1,000 you do not need to submit a tax return,” explains accountant Leanne Gunns. “If you are selling your own items, for example reselling your own clothing on Vinted, then it is unlikely you would need to pay tax on this, but if you have purchased or made items specifically for reselling, this would count as self-employment.”
Bear in mind that once you earn over £1,000 from your side hustle, you will need to submit a tax return. “Remember that you will be taxed based on your total income, so if you exceed the higher rate threshold of £50,270 you will need to pay 40% tax, and potentially national insurance, on all of your income, including your side hustle,” says Leanne Gunns.
However, if you’re renting out a spare room in your home, the government’s Rent a Room Scheme means you can earn up to £7,250 in rental income per year without paying any tax.
“Side hustles are booming, but what’s becoming apparent is that they are almost an essential top-up to meet the costs of living,” says Deborah Harland. “They’re a brilliant way to boost income, explore passions, and even see if something might eventually take over from your main job.”
About the Author
Dive even deeper
Can You Beat the £360 Bill and Tax Hikes This April?
Apprentice to Owner: How a Teenager Saved a Salon and Built a Thriving Beauty Business
by Amy Knight
Premium Bonds: Is the Nation’s Favourite Prize Draw a Good Bet for Your Savings?
Image source: Getty Images