Side hustles: what are they and how do I start one?

As the cost of living crisis continues to bite, many people are looking for ways to supplement their income – and a side hustle could be the solution.

Research from price comparison website Finder showed that in 2024, 43% of Britons have at least one side hustle to provide an "additional source of income". This has become a "popular way for Brits to earn extra cash", particularly at a time when many are "struggling to make ends meet or put money into savings".

One of the key benefits of a side hustle is "steady pay", said GoBankingRates, while some say these additional sources of income "allow you to be creative, gain experience and even get some much-needed time away from looking at screens".

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

But how do people get started with a side hustle, and what are the major factors to consider?

How to start a side hustle

To start a successful side hustle, it is vital to "figure out what you can monetize", blogger Kathy Kristof told CNBC's Make It. Subsequently, there is a need to "figure out your probable time commitments" as side hustles often need "both time and money" to get off the ground.

It is probably worth making a business plan, too, said Time. This can help people to "focus on what you will need to make your side hustle successful". But be warned, your plans could change over time, so "be flexible with your ideas".

Finally, "you'll need to let the world know you're open for business" by advertising your services or products, said Shopify. This could involve getting online, or sharing details that "point to your contact info". 

Side hustles could be started "with the full intention of keeping them that way", but people may also choose to "level up" into a full-time business if it proves successful. 

What do I have to consider?

While running a side hustle can be both emotionally rewarding and financially lucrative, there are certain rules that have to be adhered to.

Perhaps most important is the "unwelcome new tax surprise" for people who are exploring this avenue of work, said the BBC earlier this year. "With this extra income comes an extra tax bill", and this may be a shock to those who have previously only had to deal with salaried employment.

New measures have come into force to "target people who evade taxes by failing to declare their income to the authorities", said Sky News. Online marketplaces must now report what their users earn to HM Revenue and Customs.

This "crackdown" will apply to those who earn more than £1,000 a year through trading online, so if your side hustle becomes particularly profitable, you are likely to be affected. Exceeding this threshold means a need to register as self-employed and file tax returns with HMRC.

But these changes "do not create any new tax obligations for individuals", said MCL Accountants. Those who have been declaring their income correctly "have nothing to worry about". 

What side hustles would work for me?

While side hustles can often be viewed as requiring specialist knowledge or training, "it's easy to take your skills and hobbies for granted", said Rachel Wells on Forbes. Instead of worrying about whether you are qualified for another role, budding side hustlers may want to look to "the very things that come so naturally to you". 

Turning to existing skills could be a "great way to start your side hustle career", and this could involve picking up freelance contracts in the same industry, said Counting Up. Those interested in such work would "need to check your contract and make sure you're not in violation before you start".

But there are a host of other ways to make money with a side hustle without venturing too far – "think bakers, gardeners, dog walkers and handymen", the website said. 

Some side hustlers may even choose to work online, given there are "plenty of decent ways" to garner extra cash "from the comfort of your own home", the Skint Dad website said. 

Such work can provide a "huge amount of freedom", but as Britons "earn around £5,000 a year from doing jobs away from their main income", it also could be financially liberating.