The continuing cost-of-living crisis is now affecting most of the UK through rampant inflation, and especially those outside of fixed energy deals as winter appraoches. With these factors playing a big part, many are looking toward 'side hustles' to supplement their income.
A 'side hustle' is common slang for what was called a 'side job' and is basically work someone takes on to supplement their main income source - and a third of the UK is currently doing this.
Near 80 percent of those aged between 25 and 34 are supplementing their income in this way, with an even split between genders (though men earn slightly more). A sixth of side hustles are earning around £400 monthly.
There are tax implications of adding an extra income. If the extra income source is less than £1,000 gross then the self-employment does not need to be declared. This is called a 'trading allowance' and was introduced in 2017.
However, outside of this the side hustle is 'self employment income' and will need to declared and is taxable.
Considering it is likely the all of the personal tax free allowance is used up by the primary income source, it is worth checking just how much needs to be earned before taxes to satisfy the income supplement required.
You can use the calculator below to find out:
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There are number of high-paying side hustles from carpentry to pet-sitting. However, the most common forms are listed below:
- Delivery apps - from Amazon through to food delivery such as Uber Eats and Deliveroo.
- Driving apps - working as an ad-hoc or part-time taxi driver.
- Childcare - part-time or ad-hoc childcare services.
- Pet-sitting or Dog walking.
- Cleaning - part-time or ad-hoc cleaning services.
- Selling things online - setting up shops on eBay or Amazon.
- Tutoring - providing evening or weekend tutoring classes.