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 employed. 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, there are sites where you could promote your part-time services. 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.

Here’s an example. Celina recently graduated with a degree in marketing and design. Right now, she’s working as a receptionist while she looks for a job in her field. To boost her income and build her portfolio, Celina starts offering freelance logo design and social media help for small businesses in her area. She sets up a profile on a freelance website. The good side of this is that she earns extra money, gains experience in her field and grows her CV. She also enjoys it more than the reception work. However, freelance work can be inconsistent at first, and she’ll need to manage her own time. For example, she might have to stay in on weekends to complete these extra jobs.

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. If you earn less than £1,000 a year from a side hustle, you usually don’t need to report it or pay tax. This is called the trading allowance. If you earn more than £1,000, you usually need to register as self-employed and submit a self-assessment tax return. You can also learn more about this from our video on taxes and expenses for those who are self-employed.

Remember, if you start earning more, make sure you understand any tax implications. This may 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.