Side hustles

Sometimes, even with a job, it can feel like your income just isn’t stretching far enough. The good news is, there are ways to increase your income while you’re still in employment. Let’s start by looking at one common option.

Turning a hobby or a skill into another income stream is sometimes called a side hustle. It allows you to make money outside of your primary source of income.

You could sell crafts you create on digital marketplaces, or you could sell clothes on second-hand sites.  

If you’re handy with DIY, there are sites where you could advertise for part-time work. If your regular job has a professional qualification, like a Heavy Goods Vehicle licence, you could pick up extra work with a different employer. Even small amounts can add up over time and you’re in control of when and how you work.

If you’re serving in the armed forces, it’s important to know that additional paid work is allowed in some circumstances. However, you must apply for permission through your chain of command before taking on secondary employment. This is to make sure the work doesn’t conflict with your operational duties. There may also be restrictions on the type of work you can do and when you can do it. If you’re a reservist, veteran, spouse or partner working in civilian employment, you should check your employer’s policies, as some roles also have rules about additional work.

Here’s an example. Stuart is a Corporal in the forces. Outside of work, he’s always enjoyed photography and often takes photos for friends’ events. With permission from his chain of command, Stuart starts offering weekend photography services for small local events. He advertises through word of mouth and on social media. The good side of this is that he earns extra money, develops his skills and enjoys doing something creative outside of his day job. However, he needs to manage his time carefully. His main commitment is always his role in the armed forces, and he must make sure any additional work doesn’t affect his performance or availability.

Now here’s a quick word on tax. If you take on extra work or start earning from a side hustle, it’s important to know that you may need to report this income to HMRC. People who earn through a side hustle have a trading allowance set by HMRC. The trading allowance means you are able to earn up to a certain amount without needing to pay tax or notify them. If you earn more than the trading allowance set by HMRC, you usually need to register as self-employed and submit a self-assessment tax return. 

You should also be aware of Making Tax Digital, a new government initiative that requires self-employed individuals to keep digital records and submit updates to HMRC quarterly – that’s four times a year. It currently captures those with income over £50,000 but from April 2027, it will extend to those earning over £30,000 – and may be subject to more changes in the future. Remember if you start earning more, make sure you understand any tax implications. This might sound scary, but it’s manageable – and there’s lots of help online. There’s no one-size-fits-all solution, but with the right information and support, you can take real steps to increase your income and improve your financial wellbeing.