2 in 5 Brits are making money from a side hustle in 2024

Sophie Barber
Posted:
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UK adults with an extra job or business earn £900 a month on average, new research reveals.

More than 2 in 5 Brits (43%) are supplementing their main income with additional jobs or businesses, according to a new survey.

The new research by comparison site finder.com also shows that those doing extra jobs earn £10,800 from them each year, on average.

Based on the research, an estimated 22.8 million Brits are using side hustles to top up their income, at a time when the cost of living crisis is still affecting millions of households. It’s likely that many are using a side hustle as a financial buffer.

What is a side hustle?

A side hustle is any job or business outside your main employment that generates extra income. This could be anything from selling items online to taking on freelance work or an additional part-time job.

Side hustles can offer a way to explore new interests, develop skills, and enjoy the rewards of a productive hobby, in addition to topping up income. But as with all income, there are tax implications.

Younger generations are most likely to have a side hustle

Among generation Z (those aged 18-23) 68% have a side hustle in 2024 – the highest participation rate among the generations. Millennials (aged 24-42) aren’t far behind, with 65% having an additional source of income. They’re also the top earners, averaging £1,208 a month from side hustles.

Side hustles are less popular among older generations, with 40% of generation X (aged 43-54), 23% of baby boomers (aged 55-73) and just 7% of the silent generation (aged 74 and over) earning extra cash this way. They also learn much less from side hustles on average, with baby boomers earning less than £500 a month compared to millennials and generation Z who earn over £1000.

Londoners are the biggest earners from side hustles

When it comes to regional differences, London leads the way. Here, 3 in 5 people (61%) have at least one side hustle, earning an average of £1,643 per month. At the other end of the scale, only a fifth of Welsh residents (21%) have a side hustle, and the average person earns just £335 a month.

Is there a new side hustle tax in 2024?

There were reports of a new “side hustle tax” coming into force at the start of the year. In fact, there are new reporting requirements for online selling platforms such as Vinted, eBay and Airbnb: such companies must now tell HMRC how much money customers are making.

Under UK rules, you get a tax-free trading allowance of £1000 per tax year but you need to set up as a sole trader if you earn more than £1,000 from self-employment in a tax year. If you think you need to be taxed on your side hustle, you’ll have to register as self-employed with HMRC and report your earnings. And if you do set up as a sole trader, it’s sensible to consider opening a business bank account, so you can keep your business income separate.

The tax you need to pay depends on your individual circumstances and can change over time. This content is for information only - it's not tax advice. You're responsible for carrying out your own checks and for getting professional advice before making financial decisions.

About the author

Sophie Barber is a content manager for finder.com in the UK and she has over 5 years of experience in writing and publishing informative online articles for a variety of websites. She has a Master’s in English from the University of Exeter and is passionate about creating content that taps into trending topics and helps make personal finance decisions easier.

This article originally appeared on finder.com/uk and was syndicated by MediaFeed.org.

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